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Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end balance

Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 Merchandise inventory 84.440 64,600 132,500 Prepaid expenses 5,000 6,950 Plant assets, not 290,000 304-400 Total assets $445,440 $542.450 Liabilities and Equity Current liabilities $ 61,340 $ 93,300 Long-term notes payable 80.800 Common stock, $5 par value 180,000 101,000 206,000 Retained earnings 123,300 142,150 Total liabilities and equity $445.440 3542.450 Data from the current year's income statement Sales $770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 21.300 Net income 162,200 210,400 Basic earnings per share 4-51 5.11 Cash dividends per share 3.81 3.93 Beginning-of-year balance sheet data Accounts receivable, net $ 29.800 $ 54,200 Merchandise inventory 55,600 107.400 Total assets 398,000 382,500 Common stock, $5 par value 180,000 206,000 Retained earnings 98,300 93,600 (2) For both companies for current year, compute the: (a) Profit margin ratio Barco (b) Return on total assets Barco Kyan.... Kyan... (c) Return on common stockholders' equity Barco Kyan.. Which company do you consider to have better profitability ratios

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