Required intormation (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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,500 $ 34,000 Accounts receivable, net 35, 400 58,400 Current notes receivable (trade) 9,400 7,200 Merchandise inventory 84,640 142,500 Prepaid expenses 5,600 7,550 Plant assets, net 340,000 308,400 Total assets $497,540 $558,050 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $895, 200 Cost of goods sold 583,100 640,500 Interest expense 9,200 18,000 Income tax expense 14,608 24,714 Net income 153,092 211,986 Basic earnings per share 4.25 4.31 Cash dividends per share 3.73 3.92 $ 27,800 $ 50,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 71,340 $103,300 83,800 105,000 180,000 246,000 162,400 103,750 $497,540 $558,050 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 55,600 448,000 180,000 143,588 109,400 402, 500 246,000 84,628 . For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common ockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) price- rnings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) . Identify which company's stock you would recommend as the better investment. 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 $80 per share, compute their (e) 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 Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment 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 $80 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $80 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio I times Barco Kyan times 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 $80 per share, compute their (e) 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. Req 2B 2A Ret On 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Price Earn Com Stock 2A Div Yield Ratio Turn Assets Ratio Equity For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity (d) Company Choose Numerator: 1. Choose Denominator Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan 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 $80 per share, compute their (e) price- earnings ratios and (i 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 Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. Return on Total Assets (c) Company Choose Numerator: I Choose Denominator: = Return on Total Assets = Return on total assets Barco Kyan 2A Tot Asset Turn 2A Ret On Com Stock Equity > 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 $80 per share, compute their (e) price- earnings ratios and (o 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 Pro Marg 12A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover 1 Choose Denominator: Total Asset Turnover Total asset turnover times times Barco Kyan 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 $80 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Profit Margin Ratio I Choose Denominator: CompanyChoose Numerator: = = Profit margin ratio Profit margin ratio Barco Kyan