What is the correct calculation to get the average common stockholder's equity?

Problem 13-5A Comparative ratio analysis LO P3 [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 $ 21,500 $ 30,000 Accounts receivable, net 35,400 50,400 Merchandise inventory 84,840 134,500 Prepaid expenses 5,900 7,35 Plant assets, net 330,000 312,400 Total assets $477,640 $534,650 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $924, 200 Cost of goods sold 584, 100 638,500 Interest expense 8,900 13,000 Income tax expense 14,800 25,514 Net income 162,200 247,186 Basic earnings per share 3.69 5.47 Cash dividends per share 3.76 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 71,340 $103,300 78,800 99, eee 220, eee 226,000 107,500 106,350 $477,640 $534,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 50,200 63,600 113,400 438,000 422,500 220,000 226,000 110,740 39,060 Problem 13-5A 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 common stockholders' equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (1) 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity (d) Company Choose Numerator: Choose Denominator = Net income Preferred dividends 1 Return On Common Stockholders Equity Return On common stockholders' equity 35.4 0 / Average common stockholders' equity 457.820 X = 467,575 X = Barco Kyan % 162,200 247,186 - 0 52.9 % %