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 $ 19,500 $ 38,000 Accounts receivable, net 38,400 58,400 Merchandise inventory 84,640 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 330,000 310,400 Total assets $478,540 $ 554,650 Barco Kyan Company Company Data from the current year's income statement Sales $ 780,000 $886,200 Cost of goods sold 585,100 636,500 Interest expense 8,400 15,000 Income tax expense 14,992 24 465 Net income 171,508 210, 235 Basic earnings per share 4.51 5.10 Cash dividends per share 3.78 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 93,300 85,800 111,000 190,000 206,000 136,400 144,350 $478,540 $554,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 53,200 59,600 115,400 398,000 422.500 190,000 206,000 108,532 98,503 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 $105 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 Reg 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio 1 Choose Denominator: = Profit margin ratio = Profit margin ratio Barco Kyan -