Required information The following information applies to the questions displayed below. Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $912,200 585,100 648, 500 7,800 14, 000 14,800 25,183 162,300 224, 517 .97 3.92 $ 20,000 33,000 Cost of goods sold 37,400 57,400 Interest expense 8,200 Income tax expense 9,700 84,540 134,500 Net income 7,600 Basic earnings per share 280,000 304,400 Cash dividends per share 5, 800 4.27 3.75 $437,440 $545,100 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 30,800 52,200 64,340 $101,300 Current notes receivable (trade) 59,600 115,400 418,000 382,500 190,000 226,000 81,500 59,467 81,800 111,000 Merchandise inventory 190,000 226,000 Total assets 101,300 106,800 Common stock, $5 par value $437,440 $545,100 Retained earnings Total 1iabilities and equity 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 per share, compute their (e) price- earnings ratios and (dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below 2A Ret On 2A Price Earn 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Ret orn Turn Com Stock Eauitv Ratio Tot Assets Ratio For both companies compute the total asset turnover Total Asset Turnover Choose . Total Asset Company Numerator Choose Denominator Turnover Total asset turnover Net sales Average total assets 770 437,440XE 1.8 times Barco 912,200 Kyan 545,100X 1.7 times 2A Pro Marg Ratio 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 per share, compute their (e) price- earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Tot AssetsCom Stock 2A Price Earn Eauitv 2A Ret On 2A Pro Marg 2A Tot Asset 2A Ret on Earn 2A Div Yield Req 2 Ratio Ratio Turn For both companies compute the return on common stockholders' equity Return On Common Stockholders' Equity Return On Common Stockholders Company Choose Numerator: Choose Denominator Preferred dividends Net Average common stockholders Return On common stockholders 162 190, Barco 85.4 1% 224,517 99.3 |% Kyan 226,000X 2A Price Earn Ratio> 2A Ret on Tot Assets Answer is complete but not entirely correct. 2A Ret On Com Stock Equity Complete this question by entering your answers in the tabs below. 2A Ret On Price Earn 2A Div Yield Req 2B Ratio 2A Pro Marg 2A Tot Asset 2A Ret on Tot Assets Com Stock Eauitv Ratio Turn Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios Price-Earnings Ratio Choose Denominator: Earnings per share Price-Earnings Ratio Company Choose Numerator: Market price per common share Price-earnings ratio 4.270 = 4.97 1.2 times Barco 1.0 times Kyan 2A Ret On Com Stock Equity 2A Div Yield Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2A Ret On 2A Price Earn 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Ret on Tot Assets Com Stock Eauitv Req 2B Ratio Turn Ratio Assuming that share and each company's stock can be purchased at $75 per share, compute their dividend yields Dividend Yield Company -Dividend Yield Market price per share Dividend yield Choose Numerator: Choose Denominator: ual cash dividends per share 3.75 3.92 2A Price Earn Ratio Barco 75.0 % Kyan 78.4 % Req 2B
