! 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. Barco Company Kyan Company Barco Kyan Company Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $770,000 $880,200 Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 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 84,440 5,000 290,000 $ 445,440 $ 542,450 $ 61,340 $ 93,300 80,800 180,000 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory 101,000 206,000 Total assets 123,300 142,150 $ 445,440 $ 542,450 Common stock, $5 par value Retained earnings 132,500 6,950 Cost of goods sold Interest expense Income tax expense Net income 585,100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 304,400 Basic earnings per share 4.51 5.11 3.81 3.93 $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 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 $75 per share, compute their (e) price-earnings ratios and (1) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.