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

Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Barco Company Company Kyan Data from the current year-end balance sheets Assets Data from the current year's income statement Sales Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 180,000 84,440 5,000 64,600 132,500 290,000 6,950 304,400 Cost of goods sold Interest expense Income tax expense Net income $770,000 $880,200 585,100 632,500 7,900 13,000 Basic earnings per share $445,440 $542,450 Cash dividends per share 14,800 24,300 162,200 210,400 4.51 5.11 3.81 3.93 Beginning-of-year balance sheet data Accounts receivable, net $29,800 $ 54,200 101,000 Merchandise inventory 55,600 107,400 206,000 Total assets 398,000 382,500 123,300 142,150 $445,440 $542,450 Common stock, $5 par value Retained earnings 180,000 206,000 98,300 93,600 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 each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (f) 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 Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B

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