[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 $770,000 $880, 200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,300 Prepaid expenses 5,000 6,950 Net income 162,200 210,400 Plant assets, net 290,000 304,400 Basic earnings per share 4.51 5.11 Total assets $445,440 $542,458 Cash dividends per share 3.81 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 61,340 $ 93,300 Accounts receivable, net $ 29,800 $ 54,200 Long-term notes payable 80,800 101,000 Merchandise inventory 55,600 107,400 Common stock, $5 par value 180,000 206,000 Total assets 398,000 382,500 Retained earnings 123,300 142, 150 Common stock, $5 par value 180,000 206,000 Total liabilities and equity $445,440 $542, 450 Retained earnings 98,300 93,600 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 $75 per share, compute thelr(e) price-earnings ratios and () dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) eb. Identify which company's stock you would recommend as the better investment 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 margin ratio. Profit Margin Ratio Company Choose Numerator: Choose Denominator: Profit margin ratio Profit margin ratio 0 Barco Kyan 0 % 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 total asset turnover (b) Total Asset Turnover Company Choose Numerator: Choose Denominator: Net sales Average total assets Total Asset Turnover Total asset tumover 1.8 times 1.9 times 1 Barco Kyan 770,000 880,200 421,720 462,275 / 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. Return on Total Assets Company Chooso Numerator: Choose Denominator: Return on Total Assets Return on total assets 0 % Barco 0 % Kyan 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 2A Div Yield Reg 2B Turn Assets Com Stock Ratio 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 Choose Numerator: Choose Denominator: Price-Earnings Ratio Market price per common share Earnings per share Price-Earnings Ratio Barco 80 % / 4.51 17.7 times Kyan 80 X/ 5.11 = 15.7 times 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 $75 per share, compute their dividend yields. (o Company Choose Numerator: Dividend Yield Choose Denominator: Market price per share 80 Dividend Yield Dividend Yield 4.8 % 4.9 % Annual cash dividends per share 3.81 3.93 Barco Kyan 80 X =