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Summary information from the financial statements of two companies competing in the same industry follows. Barco Xyan Company Company bata from the current year-end balance sheets Assets Cash $ 20,000 $ 36,000 Accounts receivable, net 38,400 57,400 Merchandise inventory 85,040 136,500 Prepaid expenses 5,400 7.350 plant assets.net 350,000 304,400 Total asset $498,840 $541.650 Barco Kyan Company Company Data from the current year's income statement Sales $310,000 $920,200 Coat of goods sold 589, 100 645.500 Interest expense 7,900 17,000 Income tax expense 15,569 25,404 Net income 197,431 231, 296 Basie oorsinge per share 5.20 4.70 Cash dividends per share 3.77 Liabilities and Equity Current liabilities Long-term noten payable Common stock, SS par value Retained earning Total liabilities and equity Beginning-of-year balance sheet data $ 67,340 $ 92,300 Accounts receivable, net 50,000 105,000 Merchandise inventory 190,000 246,000 Total assets 160, 700 98.350 Common stock, $5 par value $498,8405541,650 Retained earnings $ 30,800 $ 55,200 63,600 111,400 428.000 402.500 190.000 246,000 106,529 60,902 Problem 13-5A Part 2 2a. For both companies compute the (s) profit margin ratio. (b) total asset turnover (d return on total assets, and (c) return on common stockholders equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e 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 at the better investment Complete this question by entering your answers in the tabs below

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