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 balance sheets Data from the current year's income statement Assets Sales $810,000 Cash $ 22,000 $ 36,000 Cost of goods sold 595,100 Accounts receivable, net 35,400 Merchandise inventory 84,440 Prepaid expenses Plant assets, net 6,000 350,000 52,400 132,500 7,350 303,400 Income tax expense Net income. Basic earnings per share Interest expense Total assets $ 497,840 $ 531,650 Cash dividends per share Current liabilities Liabilities and Equity Long-term notes payable Common stock, $5 par value. Retained earnings $ 68,340 $ 95,300 Accounts receivable, net 78,800 180,000 170,700 105,000 246,000 Total assets 85,350 Total liabilities and equity $ 497,840 $ 531,650 Beginning-of-year balance sheet data Merchandise inventory Common stock, $5 par value Retained earnings 15,569 190,131 5.28 3.74 $ 29,800 $ 50,200 63,600 111,400 448,000 412,500 180,000 246,000 115,209 58,676 9,200 $ 894,200 -634,500 14,000 24,686 221,014 4.49 3.95 a. 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 $95 per share, compute their (e) price-earnings ratios and () dividend ields. b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below.