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 Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $800,000 $888,200 Cash 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 117,000 $ 68,340 $104,300 79,800 170,000 216,000 106,200 101,000 $ 19,000 $ 36,000 34,400 57,400 84,840 134,500 6,100 7,000 280,000 303,400 $424,340 $538,300 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share 594,100 632,500 7,800 16,000 15,377 24,521 182,723 215,179 5.37 4.98 Total liabilities and equity $424,340 $538,300 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 3.73 3.93 $25,800 $53,200 63,600 109,400 428,000 402,500 170,000 216,000 50,297 55,597 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 $80 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. Complete this question by entering your answers in the tabs below.