Required information Problem 17-5A 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. Barca Kyan Company Company Data from the current year and balance sheets Assets Cash $ 20,000 $ 37,000 Accounts receivable, net 40,400 55,400 Merchandise inventory 35,040 130,500 Prepaid expenses 6, 200 7,600 Plant assets, net 360,000 311,400 Total assets 5511,640 1541,900 Barco Kyan Company Company Data from the current years income statement Sales $310,000 $585,200 Cost of goods sold 588,100 646.500 Interest expense 7,700 16,000 Income taxe 15,569 24.438 Net Income 198,631 198.262 Basic earnings per share 4.73 9.06 Cash dividends per share 3.30 Liabilities and Equity Current liabilities Long term notes payable Common stock, $ par value Retained earnings Total liabilities and equity $ 65,40 % 92,300 81,800 115,000 210,000 196,000 154,500 138.600 $511,640 541,900 Beginning of year balance sheet data Accounts receivable, et Merchandise inventory Total assets Connon stock, 55 par value Retained earnings $ 30,00 $ 53.100 55,600 107,400 378,000 412.500 210,000 195,000 115,459 97.530 2o. For both companies compute the (a) profit margin ratio, (b) total asset turnover . (a return on total assets, and (c) retum on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their le price-earnings ratios and () dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 26. 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 2A Div Yield Turn Assets Com Stock Ratio Assuming that share and each company's stock can be purchased at $105 per share, compute their price-earnings ratios (e) Price Earnings Ratio Company Choose Numerator: Choose Denominator: Price-Earnings Ratio = Price earnings ratio Barco omos Kyan Otimes 26. 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 le 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 ZA Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Reg 28 Ratio Turn Assets Com Stock Ratio Assuming that each company's stock can be purchased at $105 per share, compute their dividend vields Dividend Yield Choose Denominator: Company Choose Numerator: + Dividend Yield - Dividend yield = Barco Kyan 0 % 0 Problem 17-5A Part 2 20. 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 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 Reton Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Di Yield Reg 25 Identify which company's stock you would recommend as the better investment. The better investment Kyan company