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 Bardo Ryan Company Company Company Company Data from the current year-end balance sheets Data from the current years income statement Sales $800,000 $887,200 Cash $ 21,000 $37,000 cost of goods sold 588.100 640.500 Accounts receivable, net 39,400 51,400 Interest expense 8,800 16,000 Merchandise inventory 84,940 128,500 Income tax expense 15,377 24,493 Prepaid expenses 5,800 7,400 Net Income 187,723 206.207 Plant assets, net 320.000 307.400Basie earnings per share 4.19 Total assets $471, 140 3531,700 Cash dividenda per share 3.76 Liabilities and Equity Current Liabilities Long-term notes payable Common stoc $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 94, 300 79,800 105,000 220,000 246,000 103.000 86, 400 5471.140 $531,700 Beginning-of-year balance sheet data counts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 63,600 418,000 220,000 80, 717 $ 51,00 111,400 372,500 246,000 76,393 2a. For both companies compute the (a) profit margin ratio, (o total asset turnover return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identity which company's stock you would recommend as the better investment