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 Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $810,000 $892,200 Cash $ 20,500 $ 31,000 Cost of goods sold 589,100 636,500 Accounts receivable, net 34,400 51,400 Interest expense 9,200 15,000 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 Total liabilities and equity 111,000 $ 60,340 $ 93,300 84,800 160,000 Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 130,500 7,700 307,400 84,640 5,300 360,000 $504,840 $528,000 Basic earnings per share Cash dividends per share Income tax expense 15,569 24,631 Net income 196,131 216,069 6.13 5.00 3.72 3.98 | Beginning-of-year balance sheet data $ 26,800 $ 51,200 65,600 113,400 216,000 199,700 107,700 $504,840 $528,000 388,000 412,500 160,000 216,000 122,609 63,567 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 $100 per share, compute their (e) price- earnings ratios and (f) 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.