! 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. Sales Cost of goods sold 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 Cash $ 22,000 $ 34,000 Accounts receivable, net 35,400 $ 770,000 593,100 7,800 14,800 $ 911,200 650,500 18,000 25,155 7,650 303,400 154,300 217,545 4.06 3.79 4.81 3.99 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 84,540 5,800 350,000 53,400 134,500 $ 497,740 $ 532,950 Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet. Accounts receivable, net Merchandise inventory data $ 60,340 $ 96,300 79,800 111,000 226,000 167,600 99,650 Total liabilities and equity $ 497,740 $ 532,950 Common stock, $5 par value Retained earnings 190,000 Total assets $ 28,800 $ 51,200 61,600 113,400 428,000 392,500 190,000 226,000 157,320 62,453 2a. 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 $95 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.