5 Part 2 of 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. 18 points Skipped eBook Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $790,000 $924, 200 Cash $ 22,900 $ 37,000 Cost of goods sold 590,100 642,500 Accounts 37,400 receivable, net 59,400 Interest expense 9,300 14,000 Merchandise 84,440 138,500 Income tax expense 15,185 25,514 inventory Prepaid expenses 6,100 6,900 Net income 175,415 242,186 Plant assets, net 290,000 306,400 Basic earnings per share 4.87 5.13 Total assets $439,940 $548,200 Cash dividends per share 3.75 3.93 1 Liabilities and Beginning-of-year balance sheet data Equity Current liabilities $ 67,340 $ 95,300 Accounts receivable, net $ 31,898 $ 50,400 Long-term notes 89,800 109,000 Merchandise inventory payable 59,600 109,400 Common stock, $5 180,000 236,000 Total assets 372,40 par value 448,000 372, Retained earnings 111,800 107,900 Common stock, $5 par value 180,000 236,000 Total liabilities 5439,940 $548,200 Retained earnings and equity 71,385 51,410 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (9 return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute thelr(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. Complete this question by entering your answers in the tabs below. 2A Prof 2A Tot 2A Ret on 2A Ret 2A Price 2A Div Mar Ratio Asset Tot On Com Earn Req 2B Yield For both companies compute the profit margin ratio. (a) Profit Margin Ratio Choose Choose Profit margin Denominator: ratio Profit margin ratio Barco 0 % Kyan 0 % 2A Prof Mar Ratio 2A Tot Asset Turn > Company Numerator