Barco Company Kyan Company $770,000 $880, 200 585,100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 4.51 5.11 3.81 3.93 Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $34,000 Data from the current year's income statement Sales Cost of goods sold Accounts receivable, net 46,500 64,600 Interest expense 84,440 132,500 Income tax expense 5,000 290,000 6,950 304,400 Net income Basic earnings per share $445,440 $542,450 cash dividends per share 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 Total liabilities and equity $ 61,340 $93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 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 company's stock you would recommend as the better investment.