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 fron the current year-end balance sheets Assets Cash $ 20,500 $ 36,000 Accounts receivable, net 37,400 55,400 Merchandise inventory 84,940 134,500 Prepaid expenses 5,100 7,150 Plant assets, net 280,000 310,400 Total assets $427,940 $543,458 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $890,209 Cost of goods sold 592,100 644,500 Interest expense 7,800 15,000 Income tax expense 14,800 24,576 Net income 155,300 206,124 Basic earnings per Share 3.88 4.77 Cash dividends per share 3.82 4.02 Liabilities and Equity Current abilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $104,300 79,800 115,000 200,000 216,000 B5,800 108,250 $427,940 $543,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise Inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 53,pee 55,600 115,400 378,000 372,500 200,000 216,000 83,300 75,690 2a. For both companies compute the 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 $95 per share, compute their (el 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 (a) Company Choose Numerator: Profit Margin Ratio 1 Choose Denominator: 11 Profit margin ratio Profit margin ratio % 1 11 Barco Kyan H % For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: 1 Choose Denominator: = Total Asset Turnover = Total asset turnover times Barco 11 Kyan 11 times For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets Choose Denominator: II Return on Total Assets Return on total assets = Barco de Kyan 11 % For both companies compute the return on common stockholders' equity (d) Company Return On Common Stockholders Equity Choose Denominator Choose Numerator: - Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan Assuming that share and each company's stock can be purchased at $95 per share, compute their price-earning HEHE Company Choose Numerator: Price-Earnings Ratio Choose Denominator 11 Price-Earnings Ratio Price-earnings ratio times Barco Kyan 7 11 11 times Assuming that each company's stock can be purchased at $95 per share, compute their dividend yields (6) Company Choose Numerator: Dividend Yield Choose Denominator. Dividend Yield Dividend yield = Barco II Kyan % % = ( 2A Price Earn Ratio Reg 2B>