! 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. Kyan Company Barco Kyan Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Company Company Data from the current year's income statement Sales $770,000 $880, 200 Cost of goods sold 585, 100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.93 3.81 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 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 common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (1) 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