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		$	881,200
Cash	$	18,500		$	34,000			Cost of goods sold		591,100			640,500
Accounts receivable, net		39,400			51,400			Interest expense		8,000			15,000
Merchandise inventory		84,840			136,500			Income tax expense		15,569			24,327
Prepaid expenses		5,300			6,950			Net income		195,331			201,373
Plant assets, net		320,000			311,400			Basic earnings per share		4.65			4.46
Total assets	$	468,040		$	540,250			Cash dividends per share		3.79			3.98
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	69,340		$	91,300			Accounts receivable, net	$	27,800		$	52,200
Long-term notes payable		83,800			109,000			Merchandise inventory		59,600			107,400
Common stock, $5 par value		210,000			226,000			Total assets		418,000			372,500
Retained earnings		104,900			113,950			Common stock, $5 par value		210,000			226,000
Total liabilities and equity	$	468,040		$	540,250			Retained earnings		68,749			92,473

rev: 11_27_2019_QC_CS-192168

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 companys stock can be purchased at $85 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.