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. Data from the current year- end balance sheets Assets Barco Company Kyan Company Data from the current year's Kyan Barco Company Company $ 810,000 $ 881,200 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities $ 18,500 $ 31,000 36,400 84,340 5,800 290,000 52,400 130,500 7,300 304,400 $ 435,040 $ 525,600 income statement Sales 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 589,100 650,500 7,900 12,000 15,569 24,327 197,431 194,373 5.48 4.72 3.80 3.92 $ 60,340 $ 91,300 $ 26,800 $ 57,200 Long-term notes payable 81,800 101,000 59,600 117,400 Common stock, $5 par value 180,000 206,000 448,000 412,500 Retained earnings 112,900 127,300 Total liabilities and equity $ 435,040 $525,600 Common stock, $5 par value Retained earnings 180,000 206,000 52,269 94,431 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 $80 per share, compute their (e) price-earnings ratios and (1) 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio. (a) Company Barco Kyan 2A Price Earn Ratio 2A Div Yield Req 2B Profit Margin Ratio Numerator: 1 Denominator: 1 =Profit margin ratio =Profit margin ratio I = 0% 0% < 2A Prof Mar Ratio 2A Tot Asset Turn >