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1a. 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 share and each company stock can be purchased at $100 per share, compute their (e) price-earning last ratios and (f) divided yields. (Do Not round intermediate calculations. Round your answers to two decimal places.)

1b. Identify which companys stock you would recommend as the better investment.

0 Required Information The following information applies to the questions displayed below Summary information from the financial statements of two companles competing in the same Industry follows BarcoKyan Cospany Cospany Company Company Data fron the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales s ze,eee $ 31,e00 Cost of goods sold 36,480 53,46e Interest expense 587,100 64se 8,58 14,000 15,377 25 121 189,823 233,489 5.91 40 3.743.92 9,280 7,4e8 Incone tax expense 84,240 13e, 5ee Net income 5, 800 ,600 Basic earnings per share 316,800 307,40 Cash dividends per share 465,64e $537,300 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current Labi1ities Long-tere notes payable Common stock, $5 par value Retained earning s 29,8ee s s4zee ces 63,348 $183,380 Current notes receivable (trade) 79,80 109,800 Merchandise inventory 68,09216,00 Total assets 8,999 422,5e 162,580 309 90e Common stock, $S par value 160, ee02361 Total 1iabiiities and equity 465,64 5537,00 Retained earnings 3,357 448s 2a. For both companies compute the ( profit margin ratio, () total asset turnover(d return on total assets, and (oh return on common stockholders' equity Assuming that share and each company's stock can be purchased at $100 per share, compute their (e) price earnings retos and?anidend yields (Do not round intermediete calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend os the better investment Prev 5 of ip

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