Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current years income statement Assets Sales $ 780,000 $ 901,200 Cash $ 20,000 $ 37,000 Cost of goods sold 591,100 650,500 Accounts receivable, net 35,400 58,400 Interest expense 8,200 19,000 Merchandise inventory 84,640 132,500 Income tax expense 14,992 24,879 Prepaid expenses 6,000 7,600 Net income 165,708 206,821 Plant assets, net 330,000 304,400 Basic earnings per share 4.60 4.79 Total assets $ 476,040 $ 539,900 Cash dividends per share 3.78 3.98 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,340 $ 101,300 Accounts receivable, net $ 27,800 $ 56,200 Long-term notes payable 84,800 105,000 Merchandise inventory 55,600 107,400 Common stock, $5 par value 180,000 216,000 Total assets 428,000 392,500 Retained earnings 145,900 117,600 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 476,040 $ 539,900 Retained earnings 116,272 82,715 rev: 11_27_2019_QC_CS-192168 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 companys stock can be purchased at $85 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 companys stock you would recommend as the better investment.

Required Information [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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $780,000 $901,200 Cash $ 20,000 $ 37,000 Cost of goods sold 591, 100 650,500 Accounts receivable, net 35, 400 5B, 400 Interest expense B, 200 19,000 Merchandise inventory 84,640 132,500 Income tax expense 14,992 24,879 Prepaid expenses 6,000 7,600 Net income 165, 708 206, 821 Plant assets, net 330,000 304, 400 Basic earnings per share 4.60 4.79 Total assets $476,040 $539,900 Cash dividends per share 3.78 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65, 340 $101,300 84,800 105,000 180,000 216,000 145, 900 117,600 $476,040 $539,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 $ 56,1200 55,600 107,400 420,000 392,1500 180,000 216,000 116,272 82,715 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (c) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (1 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 Reg 28 For both companies compute the profit maroin ratin 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 $85 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. Reg 2B 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets 2A Div Yield Ratio Com Stock For both companies compute the profit margin ratio. (a) Profit Margin Ratio Choose Choose Company Numerator: Denominator: Profit margin ratio Current assets X 11 Current liabilities Profit margin ratio Barco x! 0 % Kyan x! *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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 $85 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator: Choose Denominator: Current assets x 1 Average total liabilities Barco 11 Kyan x/ = Total Asset Turnover Total asset turnover 0 times 0 times x = *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (c) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $85 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets Choose Denominator: Average total liabilities Return on Total Assets Return on total assets Net income 1 Barco 0 % Kyan 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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 $85 per share, compute their (e) price-earnings ratios and (1 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 A Price Ear ZA Div Yield Com Stock Ratio Reg 2B For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity. Choose Denominator Company Choose Numerator: . Return On Common Stockholders' Equity Return On common stockholders' equity x x Barco 11 0 % X x- Kyan x = 0 % (2A Rot on Tot Assets 2A Price Earn Ratio > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. ......... 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (q) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (1 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 Eam 2A Div Yield Req 2B Ratio Assuming that share and each company's stock can be purchased at $85 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: Price-Earnings Ratio Price-earnings ratio x/ Barco x/ 0 times times Kyan x / x = 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 0 % 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 $85 per share, compute their (e) price-earnings ratios and (1 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 Reg 2B Identify which company's stock you would recommend as the better investment. The better investment