Problem 13-5A (Static) Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barcol Company Kyan Company Barco Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 Cash $19,500 $34,000 Cost of goods sold 58$,100 Accounts receivable, net 46,500 64,600 Interest expense 7,900 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 84,440 5,000 290,000 304,400 $445,440 $ 542,450 $ 61,340 $93,300 132,500 Income tax expense 14,800 6,950 Net income 162,200 Basic earnings per share 4.51 Cash dividends per share 3.81 Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 80,800 180,000 123,300 101,000 206,000 Merchandise inventory 55,600 Total assets 398,000 142,150 $ 445,440 $ 542,450 Common stock, $5 par value Retained earnings 180,000 98,300 Problem 13-5A (Static) Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and (5) dividend 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.