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 $ 20,500 $ 31,000 Accounts receivable, net 35,400 58,400 Merchandise inventory 84,440 134,500 Prepaid expenses 6,100 7,350 Plant assets, net 320,000 309,400 Total assets $ 466,440 $540,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $923, 200 Cost of goods sold 595, 100 634,500 Interest expense 7,800 17,000 Income tax expense 14,608 25,487 Net income 142, 492 246, 213 Basic earnings per share 3.56 5.45 Cash dividends per share 3.75 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 63, 340 $100,300 79,800 105,000 200,000 226,000 123, 300 109,350 $ 466,440 $540,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 65,600 408,000 200,000 130,808 $ 53,200 107,400 422,500 226,000 40,1773 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and (1) 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