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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

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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 Company Company Data from the current year-end balance sheets Assets Cash $ 20,eee $ 36,000 Accounts receivable, net 39,400 58,480 Merchandise inventory 15 84,34 134,5ee Prepaid expenses 5,5ee 7,450 Plant assets, net 280, eee 311,400 Total assets $429, 240 $547,750 Barco Kyan Company Company Data from the current year's income statement Sales $800, eee $906, 200 Cost of goods sold 587,100 644, $ee Interest expense 9,200 11,000 Income tax expense 15,377 25, 017 Net income 188,323 225,683 Basic earnings per share 4.48 4.99 Cash dividends per share 3.72 3.93 Liabilities and Equity Current liabilities $ 61,340 $103,300 Long-term notes payable 83,800 111,000 Common stock, $5 par value 21e, eee 226, eee Retained earnings 74,1ee 187,450 Total liabilities and equity $429, 240 $547,750 Beginning-of-year balance sheet data Accounts receivable, net $ 28,800 $ 54,200 Merchandise inventory 55,600 115,400 Total assets 438,000 362, see Common stock, $5 par value 210, eee 226, eee Retained earnings 42, 017 59,403 2e. For both companies compute the (aprofit margin ratio. ( total asset turnover (return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 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

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