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. Blanco kyon Company Company Data from the current year end balance sheets Assets Cash $ 21,00 36,00 Accounts receivable, net 36,400 Merchandise Inventory 84,460 140.500 Prepaid expenses Plant assets, net 330.00 910,400 Total assets $477.240 $555,050 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $889, 200 Cost of goods sold 589,100 646.500 Interest expense 3,300 12.000 Income tax expense 15,372 24.549 Net Income 187.223 206,152 Basic earnings per share $.00 Cash dividends per share 3.0 4.03 Liabilities and Equity Current liabilities Longter notes payable Connon stock, 55 par value Retained earnings Total Habilities and equity lleginning of-year balance sheet data $ 1,40 $100,300 Accounts receivable, net 80,00 103,040 Herchandise Inventory 210,000 206,000 Total assets 111.1 145.750 Common stock. 55 par value 5497,2405555,850 Retained earnings $ 28,000 $ 56200 63.600 107,400 428.000 40250 210,000 200.000 79,277 105 222 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, I return on total assets, and (c) return on common stockholders' equity Assuming that each company's stock can be purchased at $85 per share, compute their (el price earnings ratios and (1) 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 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Reton Tot Turn Assets 2A Ret On Com Stock 2A Price Eam Ratio 2A Div Yield Reg 28 For both companies compute the return on common stockholders' equity (d) Return On Common Stockholders Emully Company Chahe Nuno Choose Denominator - Return On Common Stockholders' Equity Return On common stockholders equity O Barco Kyan Required information 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that share and each company's stock can be purchased at $85 per share, compute their price-earnings ratios. (e) Company Price Earnings Ratio | Choose Denominator: Choose Numerator: Price Earnings Ratio = Price-earnings ratio 0 times O times Barco = Kyan Required information 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that each company's stock can be purchased at $85 per share, compute their dividend yields. (1) Company Dividend Yield 1 Choose Denominator: Choose Numerator: Dividend Yield Dividend yield 0 % Barco 0 % Kyan Required information 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On A Price Eam Com Stock Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment A Div Yield Rogo Barco company kyan company
