Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company xyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notos payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 18,000 $ 30,000 37,400 59.400 84,440 134,500 5,400 7.450 310,000 311,400 5.453,240 542,750 Data from the current year's Income statement Sales Cost of goods sold Interest expense Income tax expense Net Income Basle earnings per share Cash dividenda per share Beginning of-year balance sheet data Accounts receivable, not Horchandise inventory Total SLR Comon stock, $5 par value Retained earning $ 300,000 $901,200 590, 100 632,500 8.700 15,000 15,377 24,879 185,823 228.821 5.84 1.77 4.01 $ 63,340100,300 80,000 101,000 190,000 196.000 121,100 145,450 5.455.240 5 542,750 $ 31,800 59,600 450,000 190,000 70,537 $ 52,200 109.400 192,500 196,000 7), B21 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (a return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $70 per share, compute their (el price-earnings ratios and (1 dividend yields. 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 Price Earn Ratio 2A DIV Yield 2A Prof Mar 2A Tot Asset 2A Reton Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio. Reg 28 Profit Margin Ratio Denominator Company Numerator Profit margin ratio Profit margin ratio 1 Barco Kyan A Prop Rated 2A Tot Asset Turn > Complete this question by entering your answers in the tabs below. 2A Price Earn 2A Prof Mar. 2A Tot Asset 2A Reton Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the total asset turnover 2A Div Yield Ratio Reg 28 (6) Company Total Asset Turnover Denominator Numerator: Barco Kyan Total Asset Turnover Total asset tumover times times (2A Prof Mar Ratio ZA Ret on Tot Assets > Complete this question by entering your answers in the tabs below. ZA Prof Mar 2A Tot Asset 2A Ret en Tot Ratio Tum Assets 2A Ret On Equity 2A Price Earn Ratio 2A Di Yield Reg 28 For both companies compute the return on total assets. Company Numerator Beturn on Total Assets Denominator Return on Total Assets Return on total assets Barco Kyan 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 Equity 2A Price Earn 2a Div Vield Ratio Reg 28 Assuming that each company's stock can be purchased at $70 per share, compute their dividend yields Company Numerator: Dividend Yield Denominator Dividend Yield Dividend yield Barco Kyan Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret on 2A Price Earn Ratio Turn Assets Equity 2A Div Yield Ratio Identify which company's stock you would recommend as the better Investment. The botter investment A DIV Yield Barco company kyan company
