Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 17-5A (Algo) Part 2 Barco Company $ 22,500 37,400 84,440 6,100 360,000 $ 510,440 Kyan Company $ 32,000 57,400 136,500 6,950 307,400 $540,250 $ 101,300 111,000 246,000 81,950 $ 510,440 $ 540,250 $ 70,340 83,800 200,000 156,300 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense $ 30,800 63,600 408,000 200,000 159,408 Kyan Company $ 901,200 636,500 16,000 24,879 223,821 4.55 3.94 $ 56,200 107,400 412,500 246,000 51,977

Summary information from the financial statements of two companies competing in the same industry follows. Problem 17-5A (Algo) Part 2 20. For both companies compute the (c) profit margin ratio, (b) total asset turnover, (c) retum on total assets, and (d) return on equity: Assuming that each company's stock can be purchased at $90 per share, compute their (c) price earnings ratios and (i) dividend yields. 2b. Identify which company's stock you would recommend as the better investment