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 $ 18,000 $ 36,000 Accounts receivable, net 38,400 53,400 Merchandise inventory 84,640 Prepaid expenses 5,300 7,300 Plant assets, net 300,000 309,400 Total assets $446,340 $538,600 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $921,200 Cost of goods sold 585,100 638,500 Interest expense 8,600 18,000 Income tax expense 14,608 25, 432 Net income 151,692 239,268 Basic earnings per share 3.61 5.81 Cash dividends per share 3.78 3.99 132,500 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69, 340 $ 96,300 81,800 105,000 210,000 206,000 85,200 131,300 $ 446, 340 $538,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 53,200 55,600 109,400 428,000 422,500 210,000 206,000 92,268 56, 420 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 each company's stock can be purchased at $95 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. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. Profit Margin Ratio (a) Company Choose Numerator: | Choose Denominator: = Profit margin ratio Profit margin ratio 0 % Barco = / / Kyan = 0 % 2A Prof Mar Ratio 2A Tot Asset Turn 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: | Choose Denominator: = Total Asset Turnover / Total asset turnover Barco 0 times Kyan 0 times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $95 per share, compute their dividend yields. Dividend Yield (f) Company Choose Numerator: | Choose Denominator: = Dividend Yield Dividend yield = = Barco 0 % Kyan / = 0 % 2A Price Earn Ratio Req 2B Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment 2A Div Yield Req 2B