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 $770,000 $880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 46,500 84,440 Accounts receivable, net 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 5,000 290,000 64,600 132,500 6,950 304,400 $ 445,440 $ 542,450 $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $ 542,450 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Interest expense 7,900 13,000 Income tax expense 14,800 Net income 162,200 Basic earnings per share 4.51 3.81 24,300 210,400 5.11 3.93 $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (4) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.