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Required information 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 Company Kyan Barco an Company Company Data from the current vear-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 84 9007 000 Saze 84,240 132,500 Net income $770,000 $913,200 595,100 650,500 12,000 25.211 151,800 225,489 4.99 3.98 $20,500 32,000 Cost of goods sold 34,400 57,400 Interest expense 8,300 14,800 9,900 14 300650 8,600 Income tax expense 5,500 7,000 Basic earnings per share 3.99 3.72 320,000 305,400 Cash dividends per share $474,540 $542,900 Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 $ 58,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 65,340 $ 93,300 Current notes receivable (trade) 84,800 101,000 Merchandise inventory 190,000 226,000 Total assets 134,400 122,600 Common stock, $5 par value 55,600 107,400 418,000 382,500 190,000 226,000 123,960 77,007 Total liabilities and equity $474,540 $542,900 Retained earnings 2a. 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'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

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