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Required Information

$[$The following information applies to the questlons displayed below.$]$

Summary Information from the financlal statements of two companles competing in the same Industry follows.

$\backslash$table$[[,\backslash$table$[[$Barco$],[$Company$]],\backslash$table$[[$Kyan$],[$Company$]],,\backslash$table$[[$Barco$],[$Company$]],$Kyan Company$],[\backslash$table$[[$Data from the current year$-$end$],[$balance sheets$]],,,\backslash$table$[[$Data from the current year's income$],[$statement$]],,],[$Assets$,,,$Sales,$$78\backslash$theta $,\backslash$theta $\backslash$theta $\backslash$theta $,$$$913,200],[$Cash$,$$$22,500,$$$30,000,$Cost of goods sold,$595,100,632,500],[$Accounts receivable, net,$38,400,51,409,$Interest expense,$8,200,16,0\backslash$theta $\backslash$theta $],[$Merchandise inventory,$84,440,142,500,$Income tax expense,$14,992,25,211],[$Prepaid expenses,$5,700,7,500,$Net income,$161,708,239,489],[$Plant assets, net,$29\backslash$theta $,\backslash$theta $00,305,400,$Basic earnings per share,$4\mathrm{.}26,5\mathrm{.}30],[$Total assets,$$441,640,$$$536,800,$Cash dividends per share,$3\mathrm{.}82,3\mathrm{.}97],[$Liabilities and Equity,,,Beginning$-$of$-$year balance sheet data,,$],[$Current liabilities,$$66,340,$$$95,300,$Accounts receivable, net,$$28,800,$$$52,20\backslash$theta $],[$Long$-$term notes payable,$8\backslash$theta $,800,111,$o$+\backslash$theta o$+,$Merchandise inventory,$55,600,107,40\backslash$theta $],[$Common stock, $$5$ par value,$19\backslash$theta $,\backslash$theta $\backslash$theta $\backslash$theta $,226,\backslash$theta $\backslash$theta $\backslash$theta $,$Total assets,$428,\backslash$theta $\backslash$theta $,392,500],[$Retained earnings,$103,900,104,500,$Common stock, $$5$ par value,$190,\backslash$theta $\backslash$theta $\backslash$theta $,226,000],[$Total liabilities and equity,$$441,04\backslash$theta $,$$$536,800,$Retained earnings,$87,352,44,455]]$

$2$a$.$ For both companles compute the $($a$)$ profit margin ratlo, $($b$)$ total asset turnover, $(C)$ return on total assets, and $(d)$ return on equity. Assuming that each company's stock can be purchased at $$75$ per share, compute thelr $($e$)$ price$-$earnings ratios and $(f)$ dividend ylelds.

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

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[\backslash$table$[[2$A Prof Mar$],[$Ratio$]],\backslash$table$[[2$A Tot Asset$],[$Turn$]],\backslash$table$[[2$A Ret on Tot$],[$Assets$]],\backslash$table$[[2$A Ret On$],[$Equity$]],\backslash$table$[[2$A Price Earn$],[$Ratio$]],2$A$.$ Div Yield,Req $2$B$]]$

$\backslash$table$[[($a$),$Profit Margin Ratio$],[$Company$,$Numerator:,l$,$Denominator:,$=,$Profit margin ratio,,,,$],[,,$l$,,=,$Profit margin ratio,,,,$],[$Barco$,,$l$,=,,\%,,,,],[$Kyan$,,$l$,,=,,,,,]]$