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 Company Company Kyan Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $770,000 $880,200 Cash $ 19,500 $ 34,000 Accounts receivable, net 132,500 304,400 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 46,500 64,600 6,950 84,440 5,000 290,000 $445,440 $542,450 $ 61,340 $ 93,300 80,800 180,000 101,000 206,000 123,300 142,150 Total liabilities and equity $445,440 $542,450 Cost of goods sold Interest expense Income tax expense Net income 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 $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 585,100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 4.51 5.11 3.81 3.93 | 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. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Com Stock Assets 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Barco Kyan 1 Profit Margin Ratio Choose Denominator: =Profit margin ratio =Profit margin ratio % % 2A Prof Mar Ratio 2A Tot Asset Turn >