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Summary information from the financial statements of two companies competing in the same industry follows.

Barco Company Kyan Company Barco Company Kyan Company

Data from the current year$-$end balance sheets Data from the current year$$s income statement

Assets Sales $ $790,000$ $ $909,200$

Cash $ $20,000$ $ $32,000$ Cost of goods sold $595,100632,500$

Accounts receivable, net $39,40060,400$ Interest expense $8,40015,000$

Merchandise inventory $84,540132,500$ Income tax expense $15,18525,100$

Prepaid expenses $5,3007,700$ Net income $171,315236,600$

Plant assets, net $300,000308,400$ Basic earnings per share $4\mathrm{.}765\mathrm{.}23$

Total assets $ $449,240$ $ $541,000$ Cash dividends per share $3\mathrm{.}724\mathrm{.}00$

Liabilities and Equity Beginning$-$of$-$year balance sheet data

Current liabilities $ $70,340$ $ $99,300$ Accounts receivable, net $ $28,800$ $ $53,200$

Long$-$term notes payable $80,800105,000$ Merchandise inventory $57,600107,400$

Common stock, $$5$ par value $180,000226,000$ Total assets $448,000402,500$

Retained earnings $118,100110,700$ Common stock, $$5$ par value $180,000226,000$

Total liabilities and equity $ $449,240$ $ $541,000$ Retained earnings $80,70554,900$

$2$a$.$ 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$$s stock can be purchased at $$80$ per share, compute their $($e$)$ price$-$earnings ratios and $($f$)$ dividend yields.

$2$b$.$ Identify which company$$s stock you would recommend as the better investment.