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 $ 22,000 $ 30,000 Accounts receivable, net 36,400 57,400 Merchandise inventory 84,740 132,500 Prepaid expenses 5,200 7,550 Plant assets, net 370,000 312,400 Total assets $518, 340 $539,850 Barco Kyan Company Company Data from the current year's income statement Sales $ 780,000 $916,200 cost of goods sold 587,100 650, 500 Interest expense 8,000 10,000 Income tax expense 14,992 25,294 Net income 169,908 230, 406 Basic earnings per share 4.25 5.33 Cash dividends per share 3.71 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60, 340 $ 99, 300 82,800 107,000 200,000 216,000 175,200 117,550 $518, 340 $539,850 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 57,600 107, 400 438,000 392,500 200,000 216,000 153,692 59,512 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 $75 per share, compute their (e) 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. 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 For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio I Choose Denominator: - Profit margin ratio Profit margin ratio Barco Kyan 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 (b) Company Choose Numerator: Total Asset Turnover I Choose Denominator: = Total Asset Turnover Total asset turnover times times Barco Kyan 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 return on total assets. . (c) Company Choose Numerator: Return on Total Assets 1 Choose Denominator: = Return on Total Assets Return on total assets Barco Kyan 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity. (d) Company Return On Common Stockholders' Equity Choose Denominator Choose Numerator: morator = Return On Common Stockholders' Equity = Return On common stockholders' equity Barco Kyan 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 share and each company's stock can be purchased at $75 per share, compute their price-earnin Price-Earnings Ratio Choose Denominator: Company Choose Numerator: = Price-Earnings Ratio Price-earnings ratio times times Barco Kyan 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 $75 per share, compute their dividend yields Dividend Yield I Choose Denominator: Company Choose Numerator: = Dividend Yield = Dividend yield Barco Kyan Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn 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