Required information Problem 17-5A (Algo) 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 Company xyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term noten payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Kyan Company Company Data from the current year's income statement Sales $ 20,500 $ 33,000 Coat of goods sold 35,400 51,400 Interest expense 84,340 138,500 Income tax expense 6,000 7,650 Net income 300,000 306,400 Basic earnings per sharo $ 446,240 $ 536,950 Cash dividends per share Beginning-of-year balance sheet data $ 71,340 $ 90,300 Accounts receivable, net 83,800 111,000 Merchandise inventory 210,000 236,000 Total assets B1, 100 99,650 Common stock, $5 par value $ 446,240 $ 536,950 Retained earnings $ 770,000 588,100 9,300 14,800 157,800 3.76 3.81 $ 920,200 642,500 12,000 25,404 240, 296 5.09 3.93 $ 29,800 53,600 458,000 210,000 83,320 $ 54,200 115,400 402,500 236,000 44,850 Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $85 per share, compute their (el price-earnings ratios and (y dividend yields 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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratlo. Reg 28 (a) Company Numerator Profit Margin Ratio Denominator: Barco Profit margin ratio Profit margin ratio 0 % 0 % 1 1 Kyan 2A ProMar 2A Tot Asset Turn > Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $85 per share, compute their (el price-earnings ratlos and (y dividend yields 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 2 Ret on Tot 2A Ret On A Price Earn ZA Div Yield Ratio Turn Assets Equity Ratio Reg 28 For both companies compute the total asset turnover () Company Numerator Total Asset Turnover Denominator Total Asset Turnover Total asset turnover Barco Kyan O times O times Problem 17-5A (Algo) Part 2 look 2n. For both companies compute the (a) profit margin ratio, (b) total asset turnover (c) return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $85 per share, compute their (c) price-earnings ratios and () dividend yields 26. Identity which company's stock you would recommend as the better investment int D rences Complete this question by entering your answers in the tabs below. 2A Div Yield Reg 20 2A Prof Mar 2A Tot Asset 2A Ret on Tot A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the return on total assets. (0) Return on Total Assets Company Numerator: Denominator: Barco Kyan Return on Total Assets Return on total assets O 0 % Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio. (6) total asset turnover (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (dividend yields 26. 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 Equity 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on equity. (d) Company Numerator eturn On Equity Denominator 1 1 Return On Equity Return On equity Barco Kyan 1 1 0 % 0 % Problem 17-5A (Algo) Part 2 20. For both companies compute the (al profit margin ratio. (b) total asset turnover. (c) return total assets, and (d) return on equity Assuming that each company's stock can be purchased at $85 per share, compute thelr(e) price-earnings ratios and (dividend yields. 2b. Identity which company's stock you would recommend as the better Investment es Complete this question by entering your answers in the tabs below. 2A Price Earn2A Div Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity Ratio Reg 26 Assuming that share and each company's stock can be purchased at $85 per share, compute their price-earnings ratlos. (o) Price Earnings Ratio Company Numerator: Denominator: Price Earnings Ratio Price-camins ratio Barco o times Kyan 1 Osmes Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover, ( return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $85 per share, compute their (e price-earnings ratios and (dividend yields 21. Identity 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 2 Ret On A Price Earn 2A Di Yield Ratio Turn Assets Equity Ratio Reg 28 Assuming that each company's stock can be purchased at $85 per share, compute their dividend yields. Dividend Yield Company Numerator: Denominator Dividend Yield Dividend yield Barco 0 Kyan 0