0 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. Barcol Kyan Company Company Barco Company: Kyan Company Data from the current year-end Data from the current year's income balance sheets statement Assets Sales $780,000 $ 927,200 Cash $ 20,500 $ 37,000 Cost of goods sold Accounts receivable, net 35,400 84,740 5,400 360,000 $ 506,040 113,000 246,000 142,900 85,250 Total liabilities and equity $ 506,040 $ 544,550 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 70,340 $ 100,300 82,800 210,000 Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 56,400 595,100 7,900 630,500 12,000 138,500 14,992 25,597 7,250 305,400 $544,550 162,008 259,103 3.86 3.78 5.27 4.02 $ 31,800 $ 55,200 59,600 115,400 418,000 402,500 210,000 246,000 139,652 23,931 26. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (d) 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 (4) dividend yields 2b. Identify which company's stock you would recommend as the better investment