Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales S760, 000 $882,200 595,100 632, 500 7,900 13,000 14, 608 24,355 152, 392 212, 345 4.92 3.98 s 18, 500 34,000 Cost of goods sold 36,400 54, 400 Interest expense 9,700 7,400 Income tax expense 84,940 140,500 Net income 3.46 3.76 6, 100 7,050 Basic earnings per share 360,000 309,400 Cash dividends per share S515, 640 $552,750 Beginning-of-year balance sheet data Accounts receivable, net s 25, 800 54,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 5 par value Retained earnings Total liabilities and equity S 65, 340 96,300 Current notes receivable (trade) 84,800 101,000 Merchandise inventory 220,000 216, 000 Total assets 145, 500 139,450 Common stock, S5 par value 55,600 109,1400 448, 000 412, 500 220,000 216,p00 158, 548 99, 041 $515, 640 $552,750 Retained earnings 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and 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