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 Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 18,500 37,400 84,640 5,700 300,000 $ 446,240 Kyan Company Data from the current year's income statement Sales $ 35,000 Cost of goods sold 57,400 Interest expense 134,500 Income tax expense 7,850 Net Income 304,400 Basic earnings per share 5 539,150 Cash dividends per share Beginning of year balance sheet data $ 94,300 Accounts receivable, net 115,000 Merchandise inventory 226,000 Total assets 103,850 Common stock, 55 par value $ 539,150 Retained earnings $ 780,000 588,100 7,800 14,992 169,188 4.97 3.73 $ 995,200 640,560 17,000 24,990 222,719 4.93 4.02 $ 66,340 51,800 170,000 128,100 $ 446,240 $ 25,800 55,600 428,000 170,000 85,812 $ 58,260 111,400 422,500 226,000 62,844 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (q) return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and ( dividend yields 2b. Identify which company's stock you would recommend as the better investment