Summary information from the financial statements of two companies competing in the same industry follows.

Required information Problem 17-5A Comparative ratio analysis LO P3 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 $ 19,500 $ 32,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 84,740 142,500 Prepaid expenses 5,300 7,100 Plant assets, net 320,000 303,400 Total assets $465,940 $536,400 Barco Kyan Company Company Data from the current year's income staterent Sales $770,000 $918,200 Cost of goods sold 594,100 652,500 Interest expense 8,700 14,000 Income tax expense 14,800 25,349 Net income 152,400 226,351 Basic earnings per share 4.01 4.80 Cash dividends per share 3.70 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 60,340 $ 99, 300 Accounts receivable, net 85,800 103,000 Merchandise inventory 190,000 236,000 Total assets 129,800 98,100 Common stock, $5 par value $465,940 $536,400 Retained earnings $ 27,800 $ 56,200 53,600 115,400 458,000 392,500 190,000 236,000 118,000 60, 549 Problem 17-5A Part 2 24. 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 $100 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 Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn 2a Div Yield Ratio Req 2B For both companies compute the profit margin ratio. (a) Profit Margin Ratio 1 Choose Denominator: Company Choose Numerator: = Profit margin ratio = Profit margin ratio Barco kyan 2A Prof Mar Ratio 2A Tot Asset Turn > Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Turn Assets Com Stock 2A Price Earn in 2A Div Yield Ratio 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 0 times 0 times 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 Com Stock 2A Price Earn * Ratio 2A Div Yield Reg 2B For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets 1 Choose Denominator: = Return on Total Assets = Return on total assets 0 % 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 Com Stock A Price Earn 2A Div Yield Ratio Reg 2B For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Choose Denominator Company Choose Numerator: = Return On Common Stockholders' Equity = Return On common stockholders' equity Barco kyan 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 Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio ! Choose Denominator: Choose Numerator: - Price-Earnings Ratio = Price-earnings ratio 0 times O times Barco Kyan 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 Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. Dividend Yield 1 Choose Denominator: Company Choose Numerator: = = Dividend Yield Dividend yield Barco Kyan 0 %