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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $ 31,000 Accounts receivable, net 36,400 53,400 Merchandise inventory 84,740 132,500 Prepaid expenses 5,300 7,150 Plant assets, net 350,000 304,400 Total assets $497, 440 $528,450 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $893,200 cost of goods sold 588,100 632,500 Interest expense 7,900 11,000 Income tax expense 14,608 24,659 Net income 149,392 225,041 Basic earnings Basic earnings per share 3.93 4.77 Cash dividends per share 3.76 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 60,340 $101,300 Accounts receivable, net 84,800 109,000 Merchandise inventory 190,000 236,000 Total assets 162,300 82,150 Common stock, $5 par value $497,440 $528,450 Retained earnings $ 31,800 $ 52,200 53,600 109,400 378,000 372,500 190,000 236,000 155,788 45,437 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (q) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and 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. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. Profit Margin Ratio I Choose Denominator: Company Choose Numerator: = Profit margin ratio = Profit margin ratio Barco Kyan 2A Prof Mar Ratio 2A Tot Asset Turn >