Required Information 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 and balance sheets Assets Cash $ 19,500 $ 38,000 Accounts receivable, net 33,400 50,400 Merchandise inventory 84,440 238,500 Prepaid expenses 5,700 7,550 Plant assets, net 330.000 311,400 Total assets $473,040 $545,850 Barco Company Company Data from the current year's income statement Sales $780,000 $593,200 Cost of goods sold 587,100 638,500 Interest expense 8.900 12.000 Income tax expense 14,992 24,659 Net income 169,008 218,041 Basic earnings per share 4.69 5.05 Cash dividends per share 3.76 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 94,300 80,800 113,000 180,000 216,000 142,900 122,550 $473,040 $545,850 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 29,800 $ 52,200 55,600 113.400 458.000 422,500 180,000 216,000 109.252 77,909 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (el 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. ZA Prof Mar Ratio ZA Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio Choose Denominator: = Profit margin ratio - Profit margin ratio % Barco Kyan = % 2A Tot Asset Tum > 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 each company's stock can be purchased at $105 per share, compute their (el 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 Prof Mar Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 28 Turn Assets For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover 1 Choose Denominator: = Total Asset Turnover Total asset turnover times 1 Barco Kyan times 1 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (9) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (el 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 Prof Mar Ratio ZA Tot Asset 2A Retory Tot 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Turn Asset Reg 28 For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets Choose Denominator: Return on Total Assets + Return on total assets % Barco % Kyan Problem 13-5A Part 2 2a. For both companies compute the profit 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 $105 per share, compute their price-earings 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 Prof Mar Ratio 2A Tat Asset 2A Reton Tot Turn Assets 2A Ret On Com Stock 2A Price tam Ratio 2A DIV Yield Reg 28 For both companies compute the return on common stockholders' equity. (d) Company Choose Numerator Return On Common Stockholders' Equity Choose Denominator = Return On Common cho Return On common stockholders 1 Barco Kyan - (2A Reton Tot Assets 2A Price Earn Ratio > 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 each company's stock can be purchased at $105 per share, compute their (el 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. 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 Police Eam Ratio 2A Div Yield Reg 28 Assuming that share and each company's stock can be purchased at $105 per share, compute their price-earnings ratios. (0) Company Price Earnings Ratio Choose Denominator Choose Numerator: Price-Earnings Ratio Price-camins ratio 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 (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (el 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 Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot ZA Ret On 2A Price Earn Ratio Turn Assets Com Stock Ratio 2A DiVield Reg 28 Assuming that each company's stock can be purchased at $105 per share, compute their dividend yields. 0 Dividend Yield Company Choose Numerator: Choose Denominator: Dividend Yield Dividend yield % Barco Kyan 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 each company's stock can be purchased at $105 per share, compute their (el 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 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 Identify which company's stock you would recommend as the better Investment. The better investment