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 Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's income statement Assets Sales $760,000 $ 912,200 Cash. $ 22,000 $ 35,000 Cost of goods sold 591,100 634,500 Accounts receivable, net 40,400 84,640 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 6,000 330,000 $ 483,040 $ 541,900 $ 61,340 80,800 170,000 $ 99,300 107,000 206,000 170,900 129,600 $ 483,040 $ 541,900 Cash dividends per share Beginning-of-year balance sheet data. Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 54,400 Interest expense 7,800 12,000 134,500 Income tax expense 14,608 25,183 7,600 Net income 146,492 240,517 310,400 Basic earnings per share 4.31 5.84 3.71 3.96 $ 28,800 $ 57,200 63,600 113,400 398,000 402,500 170,000 206,000 150,548 52,235 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 $100 per share, compute their (e) price-earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment.