Required informatio [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 Kyan Company Company Company Company Data from the current year's income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $780,000 $897,200 590,100 644,500 8,400 14,000 14,992 24,769 166,508 213,931 3.78 4.35 3.93 $19,000 34,000 Cost of goods sold 35,400 57,400 Interest expense 9,700 7,400 Income tax expense 84,840 136,500 Net income 5,100 7,200 Basic earnings per share 3.80 320,000312,400 Cash dividends per share $474,040 $554,900 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 30,800 $ 55,200 $70,340 $ 91,300 Current notes receivable (trade) 82,800 101,000 Merchandise inventory 220,000 246,000 Total assets 100,900116, 600 Common stock, $5 par value 59,600 111,400 428,000 372,500 220,000 246,000 101,592 96,025 Total liabilities and equity $474,040 $554,900 Retained earnings 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 share and each company's stock can be purchased at $90 per share, compute their (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