Question: I need only the answer for picture below 2A return on common Stockholders equity [The following information applies to the questions displayed below.] Summary information
I need only the answer for picture below 2A return on common Stockholders equity
[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 Asset Sales $ 780,000 $925,200 Cash $ 21,000 $ 38,000 Cost of goods sold 590,100 634,500 Accounts receivable, net 36,400 53,400 nterest expense 8,400 15,000 Merchandise inventory 84,940 142,500 Income tax expense 4,992 25,542 Prepaid expenses 5,700 7,800 Net income 166,508 250158 Plant assets, net 340,000 308,400 Basic earnings per share 4.16 5.79 Total assets $ 488,040 $ 550,100 Cash dividends per share 3.72 3.98 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities 70,340 $ 102,300 Accounts receivable, net $ 27,800 $ 57,200 Long-term notes payable 85,800 103,000 Merchandise inventory 65,600 109,400 Common stock, $5 par value 200,000 216,000 Total assets 428,000 372,500 Retained earnings 131,900 128,800 Common stock, $5 par value 200,000 216,000 Total liabilities and equity $ 488,040 $ 550,100 Retained earnings 114,192 50,578 rev: 11_27_2019_QC_CS-192168 anywhere Award: 1.90 points a. 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. ssuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round termediate calculations. Round your answers to 2 decimal places.) b. 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 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 2B Ratio Turn Assets Com Stock Ratio For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Company Choose Numerator: I Choose Denominator = | Return On Common Stockholders Net income | |Average common stockholders' equity Return On common stockholders' equi Barco 166,508 323,346 = Kyan 250,158