Required information Problem 13-5A Comparative ratio analysis LO A1, 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. argo Ryan Company Company Data from the current year-end balance sheets Data from the current year' Assets Sales Cash $ 20,500 $ 31,000 Cost of goods sold Accounts receivable, net 36,400 51.400 Interest expense Merchandise inventory 85,040 140,500 Income tax expense Prepaid expenses 5.200 7.200 Net income Plant anseta, net 310,000 305,400 Basie earnings per share Total aseta $457,140 $535,500 Cash dividends per share Marco Kyan Company Company income statement $ 780,000 $924, 200 586,100 636,500 9,100 18.000 14.992 25,514 169,808 244,186 4.25 5.93 3.74 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 66,340 92,300 hecounts receivable, net 82.000 105,000.- Merchandise inventory 200,000 206,000 Total asseth 108,000 132,200 Common stock, 55 par value $457,140 $535,500 Retained earnings $ 29,800 $ 54,200 59,600 117,400 380,000 412.500 200.000 206,000 87,792 49,90 Problem 13-5A Part 2 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio ZA Tot Asset Tum 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Eam Ratio 2A Div Yield Reg 2B For both companies compute the profit margin ratio. Company Choose Numerator: Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio Barco Kyan 2A Tot Asset Turn > Problem 13-5A Part 2 2a. For both companies compute the profit margin ratio, (b) total asset turnover, (d return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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. Complete this question by entering your answers in the tabs below. 2A Price Earn Ratio 2A Div Yield Req 2B 2A Pro Marg 2A Tot Asset 2A Ret on Tot ZA Ret On Ratio | um Com Stock - Assets Equity For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover Choose Denominator: = Total Asset Turnover Total asset turnover times Barco Kyan times Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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. Complete this question by entering your answers in the tabs below. 2A Price Earn Ratio 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Ret og Tot 2A Ret On Ratio Turn Com Stock Assets Equity For both companies compute the return on total assets. Reg 28 Return on Total Assets Choose Denominator: Company Choose Numerator: - Return on Total Assets Return on total assets Barco Kyan ( 2A Tot Asset Turn 2A Ret On Com Stock Equity > Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, return on total assets, and (c) return on common stockholders' equity Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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 Complete this question by entering your answers in the tabs below. Reg 28 2A Pro Marg2A Tot Asset 2A Ret on Tot 2A et on 12A Price Earn Con Stock am ZA Div Yield Ratio Tum Assets Ratio Equity For both companies compute the return on common stockholders' equity. (d) Company Choose Numerator: 1 Return On Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan 2A Reton Tet Assets 2A Price Earn Ratio > Problem 13-5A Part 2 2a. For both companies compute the (6) profit margin ratio, (o) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Tum 2A Ret on Tot Assets A Price Earn 2A Ret On Com Stock Equity 2A Div Yield Reg 28 Ratio Assuming that share and each company's stock can be purchased at $80 per share, compute their price-earnings ratios. fel Price-Earnings Ratio Choose Denominator: Company Choose Numerator: - Price-Earnings Ratio - Price earnings ratio times Barco Kyan times ( 2A Ret On Com Stock Equity 2A Div Yield > Problem 13-5A Part 2 2a. For both companies compute the profit margin ratio, (b) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Tum 2A Ret on Tot Assets 2A Price Eam 2A Ret On Com Stock Equity 2A Div Yield Reg 28 Ratio Assuming that share and each company's stock can be purchased at $0 per share, compute their dividend yields. Dividend Yield Choose Denominator: Company Choose Numerator: - Dividend Yield - Dividend yield Barco Kyan