Summary information from the financial statements of two companies competing in the same industry follows
Summary information from the financial statements of two companies competing in the same industry follows Barco Company Kyan Company Como Data from the current year-end balance sheets $ 20,000 $$1,000 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 35,400 56,400 54,340 140,500 5,200 7,000 340,000 306,400 $484,940 $541,300 Barco Kyan Company Data from the current year's income statement Sales $780,000 5903,200 Cost of goods sold 584.100 652/500 Interest expense 7,700 11.000 Income tax expense 14,992 25.073 Net Income 173,208 219,627 Basic earnings per share 4.51 3.60 Cash dividends per share 3.70 4.00 Total assets Llabilities and Equity Current liabilities Long-term notes payable Common stock, 55 per volve Retained carnings Total liabilities and equity $ 63,340 $ 96,300 84,800 183,000 180,000 216,000 156.000 126.000 $454,940 $541,300 Beginning of year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 27,00 $ 53/2ee 55,600 115,400 355,000 392500 168,000 216,000 119,672 79173 2e. For both companies compute the (6) profit margin ratio toj total asset tumover la return on total assets and to return on common stockholders equity Assuming that each company's stock can be purchased at $70 per share, compute thelle price earnings ratios and th dividend yields (Do not round intermediate calculations. Round your answers to 2 decimal pleces.) 2b. Identify which company's stock you would recommend as the better investment 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover (return on total assets, and (c) return on common stockholders' equity Assuming that each company's stock can be purchased at $70 per share, compute their le 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 ZA Pnce Eam Ratio 2A Div Yield Reg 25 For both campanies compute the profit margin ratio. (a) Profit Margin Ratio Y Choose Denominators Company Choose Numerator: - Profit margin ratio = Profit margin ratio Barco Kyan 2A Tol Asset Turn >