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i dont understand [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same

i dont understand
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[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 Ryan Company Company Data from the current year's income statement Sales $ 19,000 $ 33,000 cost of goods sold 36,400 51,400 Interest expense 84,840 136,500 Income tax expense 5,700 7,200 Net Income 320,000 303,400 Basic earnings per share $ 465,910 $ 531,500 Cash dividende per share Beginning-of-year balance sheet data $ 61,340 $ 95,300 Accounts receivable, net 84,800 111,000 Merchandise inventory 200,000 206,000 Total assets 119,800 119,200 Common stock, 55 par value $ 465,940 $ 531,500 Retained earningo Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 780,000 $. 926,200 589,100 646,500 8,700 13,000 14,992 25,570 167,208 241,130 5.85 3.73 3.96 $ 27,800 63,600 438,000 200,000 101,792 $ 58,200 117,400 412,500 206,000 41,222 Problem 13-5A (Algo) Part 2 2a. 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 (el price-earnings ratios and (y dividend yields. 2b. Identity which company's stock you would recommend as the better investment, Complete this question by entering your answers in the tabs below. 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. 2A Price Earn ZA Div Yield Reg 28 Equity 2A Prof Mar 2A Tot Asset 2A Reton Tot 2A Ret On Ratio Tum Assets Ratio 2A On Eauity For both companies compute the profit margin ratio. (6) Profit Margin Ratio Company Numerator Denominator Profit margin ratio Profit margin ratio Barco Kyan 2A Prel Mar Ratio 2A Tot Asset Turn >

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