2 ! 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 Kyan Company Barco Kyan Company Company Book Data from the current year-end balance sheets Data from the current year's Assets Cash $ 21,500 Print Accounts receivable, net 36,400 rences Total assets Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 84,340 5,800 350,000 55,400 140,500 6,950 $ 498,040 $ 539,250 $ 62,340 84,800 $ 99,300 107,000 206,000 126,950 Total liabilities and equity $ 498,040 $ 539,250 190,000 160,900 income statement Sales Cost of goods sold 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 $ 800,000 $ 892,200 $ 33,000 593,100 7,700 648,500 12,000 15,377 24,631 183,823 207,069 303,400 4.84 5.03 3.71 3.94 $ 28,800 $ 53,200 57,600 111,400 398,000 382,500 190,000 206,000 118,057 82,209 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and () 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. Check my work