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 Data from the current year-end balance sheets Assets Cash $ 21,000 $ 32,000 Accounts receivable, net 33,400 50,400 Merchandise inventory 84,640 138,500 Prepaid expenses 6,100 7,600 Plant assets, net 320,000 309,400 Total assets $465,140 $ 537,900 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $888,200 Cost of goods sold 586,100 636,500 Interest expense 8,900 14,000 Income tax expense 15,377 24,521 Net income 189,623 213,179 Basic earnings per share 5.93 4.72 Cash dividends per share 3.74 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 103,300 85,800 109,000 160,000 226,000 155,000 99,600 $465, 140 $ 537,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 57,600 115,400 378,000 422,500 160,000 226,000 85,057 67221 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 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. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the profit margin ratio. (a) Profit Margin Ratio 1 Choose Denominator: Company Choose Numerator: = Profit margin ratio Profit margin ratio 0 % 0 % Barco / Kyan 1