Required information [The following information applies to the questions displayed below.] Barco Company Kyan Company Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end Data from the current year's balance sheets Assets Cash $ 20,500 $ 36,000 Accounts receivable, net 35,400 56,400 84,940 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 6,200 290,000 $ 437,040 $ 548,900 Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory data $ 66,340 84,800 $ 97,300 105,000 236,000 Total assets 110,600 Total liabilities and equity $ 437,040 $ 548,900 Common stock, $5 par value Retained earnings 210,000 75,900 136,500 7,600 312,400 income statement Sales Cost of goods sold Interest expense Income tax expense Net income $ 790,000 $ 922,200 585,100 8,500 650,500 17,000 15, 185 25,459 181,215 229,241 Basic earnings per share 4.31 4.86 3.79 3.92 $ 31,800 $ 52,200 63,600 113,400 408,000 402,500 210,000 236,000 53,865 66,383 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 $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: 1 Profit Margin Ratio Denominator: = Profit margin ratio II = = = II Profit margin ratio 0% 0% 2A Prof Mar Ratio 2A Tot Asset Turn For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan Total Asset Turnover Denominator: = Total Asset Turnover II = = Total asset turnover 0 times = 0 times 0 times Assuming that each company's stock can be purchased at $90 per share, compute their dividend yields. (f) Company Barco Kyan Numerator: Dividend Yield Denominator: = Dividend Yield = Dividend yield = 0% 0%