Summary information from the financial statements of two companies competing in the same industry follows.

	Barco Company			Kyan Company					Barco Company			Kyan Company
Data from the current year-end balance sheets								Data from the current years income statement
Assets								Sales	$	810,000		$	920,200
Cash	$	21,000		$	37,000			Cost of goods sold		585,100			650,500
Accounts receivable, net		34,400			58,400			Interest expense		8,000			12,000
Current notes receivable (trade)		9,200			7,200			Income tax expense		15,569			25,404
Merchandise inventory		84,340			132,500			Net income		201,331			232,296
Prepaid expenses		5,700			7,150			Basic earnings per share		5.92			4.92
Plant assets, net		280,000			311,400			Cash dividends per share		3.71			3.91
Total assets	$	434,640		$	553,650
								Beginning-of-year balance sheet data
Liabilities and Equity								Accounts receivable, net	$	31,800		$	52,200
Current liabilities	$	66,340		$	99,300			Current notes receivable (trade)		0			0
Long-term notes payable		86,800			111,000			Merchandise inventory		53,600			117,400
Common stock, $5 par value		170,000			236,000			Total assets		428,000			372,500
Retained earnings		111,500			107,350			Common stock, $5 par value		170,000			236,000
Total liabilities and equity	$	434,640		$	553,650			Retained earnings		36,309			59,606
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 $100 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. PLEASE PROVIDE THE FORMULA AND WORK