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 Kyan Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $760,000 $ 883,200 Cash $ 22,500 $ 36,000 Cost of goods sold 587,100 650,500 Accounts receivable, net 40,400 57,400 8,600 12,000 Merchandise inventory 136,500 14,608 24,383 7,000 308,400 149,692 196,317 3.40 4.54 3.78 3.95 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 84,740 5,400 320,000 $ 473,040 $ 545,300 $ 67,340 $ 96,300 78,800 220,000 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 $ 27,800 $ 51,200 111,000 63,600 115,400 216,000 Total assets 418,000 392,500 122,000 $ 473,040 $ 545,300 Common stock, $5 par value Retained earnings 220,000 216,000 123,528 96,323 106,900 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 $90 per share, compute their (e) price-earnings ratios and ( dividend yields. 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 Assets Equity 2A Price Earn Ratio 2A Div Yield Req 28 Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. (0) Price-Earnings Ration Company Numerator: Denominator: Market price per common share Earnings per share Price-Earnings Ratio Price-earnings ratio 0 times Barco 0 times Kyan