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Summary Information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from

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Summary Information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $903,280 Cash $ 20,000 $ 31,000 Cost of goods sold 590,100 644,500 Accounts receivable, net 40,400 54,400 Interest expense 8,700 19,800 Merchandise inventory 84,540 132,500 Income tax expense 14,800 24,935 Prepaid expenses 5,900 7,450 Net income 156,400 214,765 Plant assets, net 280,000 305, 400 Basic earnings per share 3.91 4.97 Total assets $430,840 $530,750 Cash dividends per share 3.75 3.92 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities 5 68,340 5102,300 Accounts receivable, net $ 27,800 $ 58,200 Long-term notes payable 78,800 113,000 Merchandise inventory 53,600 115,400 Common stock, $5 par value 200,000 216,000 Total assets 438,000 382,500 Retained earnings 83,700 99,450 Common stock, $5 par value 200,000 216,000 Total liabilities and equity $430,840 $530,750 Retained earnings 77,300 54,029 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (a) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and individend 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. ZA 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 2 For both companies compute the profit margin ratio. (a) Company Choose Numerator: und was Profit Margin Ratio Choose Denominator -Profit margin ratio -Profit marain ratio

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