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 companys stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which companys stock you would recommend as the better investment.

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Required information [The following information applies to the questions displayed belowj Summary information from the financial statements of two companies competing in the same industry follows Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets AssetS Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventor Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $925,200 590,100 632500 7,700 16,000 14,800 25542 157,400 251,158 $ 21,000 31,000 Cost of goods sold 59,400 Interest expense 34,400 9,900 7,800 Income tax expense 84,840 130,500 Net income 7,000 Basic earnings per share 4.63 3.73 5,200 330,000 307,400 Cash dividends per share 4.01 $485,340 $543,100 Beginning-of -year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 29,800 $ 561200 $ 64,340 $95,300 Current notes receivable (trade) 84,800 113,000 Merchandise inventory 170,000 236,000 Total assets 166,200 98,800 Common stock, $5 par value 59,600 111,400 398,000 422,500 170,000 236 900 135,620 36,914 $485, 340 $543,100 Retained earnings