[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 Company Kyan Company Barco Company Kyan Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold Accounts receivable, net 46,500 84,440 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5,000 290,000 $ 445,440 $61,340 80,800 180,000 123,300 $ 445,440 $ 93,300 101,000 206,000 142,150 $ 542,450 Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 64,600 132,500 6,950 304,400 Interest expense Income tax expense Net income 585,100 7,900 632,500 13,000 14,800 24,300 162,200 210,400 Basic earnings per share $ 542,450 Cash dividends per share data 4.51 5.11 3.81 3.93 $ 29,800 $ 54,200 55,600 107,400 398,000 180,000 382,500 206,000 98,300 93,600 Problem 13-5A (Static) Part 2 28. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity For both companies compute the profit margin ratio. Ratio 2A Div Yield Reg 20 (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator: Profit margin ratio. Profit margin ratio 2A Tot Asset Turn > 0% 2A Prof Mar Ratio 2A Tot A set Turn 2A Ret on Tot 2A Ret On Assets Equity 2A Price Ear Ratio 2A Div Yield Req 28 For both companies compute the total asset turnover (b) Company Barco Kyan Numerator: Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover 0 times 0 times 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. (c) Company Numerator: Barco Kyan Return on Total Assets Denominator: Return on Total Assets Return on total assets 0% 0% 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on equity. (d) Company Barcol Kyan Numerator: Return On Equity Denominator Return On Equity Return on equity 0 % 0 % < 2A Ret on Tot Assets A Price Eam Ratio > Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ration Assets 2A Ret On Equity 2A Fce Earn Ration 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio Company Barco Kyan Numerator: Denominator: Price Earnings Ratio Price-Eamings Ratio 0 times 0 times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On 2A Price Earn Equity Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. (f) Company Barco Kyan Numerator: Dividend Yield Denominator: Dividend Yield Dividend Yield 0% 0