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. Data from the current year- end balance sheets Assets Cash Accounts receivable, net 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 Barco Company Kyan Company Data from the current year's $ 21,500 $ 36,000 40,400 84,440 6,100 340,009 57,400 132,500 7,650 304, 400 $ 492,440 $ 537,950 income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory Barco Company Kyan Company $ 760,000 $ 900,200 588,109 644,500 7,800 18,009 14,608 24,852 149,492 212,848 3.56 5.17 3.79 4.02 data $ 65,340 80,809 $ 92,300 105,000 206, 090 $ 29,800 $ 50,200 55,600 111,400 Total assets 438,000 372,500 134, 650 Total liabilities and equity $ 492,440 $ 537,950 Common stock, $5 par value Retained earnings 210,000 206,009 145,988 87,426 210,000 136,300 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 $100 per share, compute their (e) price-earnings ratios and (1) dividend yields. 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Tum ZA Prof Mar 2A Tot Asset ZA Ret on Tot ZA Ret On Ratio Equity Assets 2A Price Earn Ratio 2A Div Yield Req 28 For both companies compute the profit margin ratio. (a) Company Numerator: Barco Kyan Profit Margin Ratio Profit margin Denominator: E ratio = Profit margin ratio = % = % 2A Prof Mar Ratio 2A Tot Asset Turn >