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 Kyan Company Company Barco Company Kyan Company Data from the current year-end balance sheets: Data from the current year's income statement Assets Sales $770,000 $882,200 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 Total liabilities and equity $ 65,340 $93,300 $ 22,000 $31,000 37,400 51,400 84,940 140,500 Cost of goods sold 591,100 648,500 Interest expense 8,800 10,000 Income tax expense 14,000 24,355 5,400 330,000 7,200 313,400 Net income 155,300 199,345 Basic earnings per share. 4.57 4.22 $479,740 $543,500 Cash dividends per share. 3.75 4.00 Beginning-of-year balance sheet data Accounts receivable, net $27,800 $53,200 05,800 101,000 170,000 236,000 158,600 113,200 $479,740 $543,500 Merchandise inventory 63,600 111.400 Total assets 418,000 382,500 Common stock, $5 par value Retained earnings 170,000 236,000 130,800 102,655 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common i stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and ( 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.