Kyan Company 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 Kyan Barco Company Company Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $ 790,000 Cash $ 21,000 $ 36,000 Cost of goods sold 587, 100 Accounts receivable, net 40, 400 57,400 Interest expense 8,800 Merchandise inventory 85, 040 132,500 Income tax expense 15, 185 Prepaid expenses 5,900 7,550 Net income 178,915 Plant assets, net 320,000 304,400 Basic earnings per share 4.97 Total assets $ 472, 340 $ 537,850 Cash dividends per share 3.81 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65, 340 $ 104, 300 Accounts receivable, net $ 26, 800 Long-term notes payable 81,800 109,000 Merchandise inventory 59, 600 Common stock, $5 par value 180,000 216,000 Total assets 418,000 Retained earnings 145, 200 108,550 Common stock, $5 par value 180,000 Total liabilities and equity $ 472,340 $ 537,850 Retained earnings 103, 445 $ 904, 200 632,500 10,000 24, 962 236, 738 5.48 3.96 $ 55,200 107,400 402, 500 216,000 42,884 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 $100 per share, compute their (e) price-earnings ratios and (1) dividend yields. 2b. Identify which company's stock you would recommend as the better investment