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[The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows.

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 companys stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which companys stock you would recommend as the better investment.

Kyan Company Barco Company Data from the current year-end balance sheets Assets Cash : 18,000$ Accounts receivable, net 35,400 Current notes receivable (trade) 9,500 Merchandise inventory 84,340 Prepaid expenses 5,800 Plant assets, net 310,000 Total assets $ 463,040 $ 34,000 55,400 8,200 140,500 7,000 310,400 555,500 $ Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 70,340 $ 81,800 170,000 140,900 463,040 $ 95,300 103,000 246,000 111,200 555,500 $ Data from the current year's income statement Sales $ 770,000 $ Cost of goods sold 588,100 Interest expense 8,300 Income tax expense 14,800 Net income 158,800 Basic earnings per share 4.67 Cash dividends per share 3.73 886,200 640,500 14,000 24,465 207,235 4.21 4.02 $ 25,800 $ 53,200 0 0 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 61,600 378,000 170,000 108,920 117,400 392,500 246,000 101,749 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator: I Choose Denominator: = Profit margin ratio Profit margin ratio 0 % 0 % Barco Kyan 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Total Asset Turnover I Choose Denominator: Company Choose Numerator: Total Asset Turnover Total asset turnover 0 times 0 times Barco Kyan 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on total assets. (c) Return on Total Assets I Choose Denominator: Company Choose Numerator: - Return on Total Assets = Return on total assets Barco Kyan 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity. (d) Return on Common Stockholders' Equity 1 Choose Denominator = Return On Common Stockholders' Equity Company Choose Numerator: = Return On common stockholders' equity Barco Kyan 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $90 per share, compute their pric (e) Price-Earnings Ratio I Choose Denominator: Company Choose Numerator: = Price-Earnings Ratio Price-earnings ratio Barco o times Kyan 0 times 2A Price Earn 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Div Yield Req 2B Turn Ratio Assuming that share and each company's stock can be purchased at $75 per share, compute their (f) Dividend Yield Choose Denominator: Company Choose Numerator: = Dividend Yield Dividend yield Barco Kyan 0% 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Reg 2B Identify which company's stock you would recommend as the better investment. The better investment