2 Problem 17-5A (Algo) Part 2 2a. 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 $80 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. Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity 2A Div Yield Ratio For both companies compute the profit margin ratio. (a) Proft Marolo Ratio Company Numerator: Denominator Profit margin ratio Profit margin ratio Barco Kyan % hoos 2A Tot Asset Turn > Problem 17-5A (Algo) Comparative ratio analysis LO PS (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 Xyan Company Company Company Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $ 800,000 $ 890,200 Cash $19.000 $ 34,000 Cost of goods sold 592,100 638,500 Accounts receivable, net 36.400 59,400 Interest expense 7.700 13,000 Merchandise inventory 84,240 132,500 Income tax expen 15,37 24.300 Prepaid expenses 5,200 7,850 Not Income 184,825 204.400 Plant auta, net 280,000 312,400 basic earnings per share 5.23 5.21 Total assets $ 424,840 $ 547,150 Cash dividends per share 3.72 4.02 Liabilities and Equity Beginning-of-yene balance sheet data Current liabilities $70,340 5.92.300 Accounts receivable, not $ 25,00 $ 56,200 Long-ters notes payable 80,800 LO3,000 Merchandise inventory 55,600 109,400 Common stock, $5 par value 180,000 196.000 Total asets 446,000 392,500 Retained earnings 93.700 155,850 Common stock, 55 par valge 180,000 196,000 Total liabilities and equity $ 424,840 $ 547,150 Retained earnings 42,797 109,034 is 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (c) return on total assets, and (d) return Assuming that each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (diu yields. 2b. Identify which company's stock you would recommend as the better investment eBook Complete this question by entering your answers in the tabs below. Print 2A Div Yield Reg 28 Oferences 2A Prof Mar 2A Tot Aiset 2A Ret on Tot Za Ret on 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the total asset turnover (b) Total Asset Turnover Company Numerator: Denominator: Total Asset Turnover Total asset turnover times Barco Kyan times Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (in dividend yields. 26. 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 2 Ret on Tot Ratio Turn 2A Ret On Equity 2A Price Eam Ratio 2A DIV Yield Mesets Reg 28 For both companies compute the return on total assets (C) Company Return on Total Assets Denominator: Numerator: Return on Total Assets Return on total assets 4 % Barco Kyan Complete this question by entering your answers in the tabs below. 2A Price Earn 2a Div Yield Reg 28 2A Prof Mar ZA Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equit) Ratio For both companies compute the return on equity. (d) Return On Equity Company Numerator Denominator Return On Equity Return On equity Barco Kyan % % 2A Reton Tot Assets 2A Price Earn Ratlo > Complete this question by entering your answers in the tabs below. ht Turn unces 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On IA Price Earn Ratio Assets Req 2B Equity 2A Div Yield Ratio Assuming that share and each company's stock can be purchased at $80 per share, compute their price-earnings ratios. Price-Earnings Ratio Company Numerator: Denominator: Price-Earnings Ratio Price-earnings ratio Barco Kyan times times 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar ZA Tot Asset ZA Ret on Tot 2A Ret On 2A Price Em Aloi Yiel Ratio Turn Assets Equity Ratio Assuming that each company's stock can be purchased at $80 per share, compute their dividend yields. (0) Dividend Yield Company Numerator: Denominator: Dividend Yield Dividend yield Barco Kyan % Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (c) return on total assets, and (c) return on equi Assuming that each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (7 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. Req 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn ZA Div Yield Ratio Assets Equity Ratio Identify which company's stock you would recommend as the better investment Turn The better investment