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 Data from the current year-end Company Company Barco Kyan balance sheets Data from the current year's Company Company Assets income statement Cash Sales $ 22,000 s see, 5911,200 $ 36,000 Accounts receivable, net Cost of goods sold 595,100 34,400 58,400 638,500 Interest expense Merchandise inventory 8.200 84,240 13,00 128,500 Income tax expense 15,377 23,155 Prepaid expenses 5,980 7,800 Net incone 101,323 234,545 Plant assets, net 300,000 305,400 Basic earnings per Share 4.53 Total assets $ 446,540 $ 536, 100 Cash dividends per share 3.77 1.94 Beginning-of-year balance sheet Liabilities and Equity data 5 38,800 3 53.200 $ 60,340 $ 96,300 Accounts receivable, net Current liabilities 59.600 107,400 80,800 Merchandise inventory 105,000 388,000 372,500 Long-term notes payable 200,000 246,800 Total assets 200,000 246.000 Common stock, $5 par value 105,40 88,800 Common stock, $5 par value 74,877 18,00 Retained earnings $ 446,540 $ 536,100 Retained earnings Total liabilities and equity 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (a return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $105 per share, compute their (el price-earnings ratios and (a dividend yields. 2b. Identify which company's stock you would recommend as the better investment, MU you would recommend as the better investment gratios and vidend Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio 2A Price Earn Ratio 2A Div Yield Reg 28 (a) Company Numerator: Profit Margin Ratio Denominator: Barco Kyan Profit margin ratio Profit margin ratio 0 % 0 % PA 2A Tot Asset Turn > OR BE Next > son by entering your answers in the tabs below. oped 2A Prof Mar Ratio 2 TotAsset 2 Ret on Tot Tun Assets For both companies compute the total asset turnover 2A Ret On Equity 2A Price Earn Ratio 2A Ded (b) Company Numerator: Total Asset Turnover Denominator Barco Kyan Total Assal Turnov Total O nas Om the better investment end 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 Equity 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on total assets. (c) Company Return on Total Assets Denominator: Numerator: Return on Total Asset Return on total os Barco Kyan 2A Tot Asset Turn 2A Ret On Equity> Complete this question by entering your answers in the tabs below. ter investment d 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A lot on Equity 2A Price Earn Ratio 2A D Yield Res 20 For both companies compute the return on equity. Company Return On Equity Denominator Numerator: Ratun Barco Kyan = vestment Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio ZA Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Equity 2A Price Barn Ratio 2A Div Yield Reg 20 Assuming that share and each company's stock can be purchased at $105 per share, compute their price-tarning Company Price Earnings Ratio Denominator Numerator: Pelegati Price-camins ratio am mes Barco Kyan
