! 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. Cost of goods sold Barco Company Kyan Company Barco Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $770,000 $903,200 Cash $ 21,000 $ 30,000 586,100 632,500 Accounts receivable, net 39,400 84,440 52,400 132,500 9,000 14,800 19,000 24,935 5,900 7,400 Net income 160,100 226,765 350,000 308,400 4.00 4.61 $500,740 $530,700 3.80 3.96 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 $ 70,340 $ 94,300 79,800 111,000 200,000 246,000 150,600 79,400 $500,740 $530,700 Interest expense Income tax expense Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,200 65,600 115,400 418,000 412,500 200,000 246,000 142,500 47,467 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) 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.