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Summary information from the financial statements of two companies competing in the same industry follows. Darco Kyan Company Company Data from the current year-end balance

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Summary information from the financial statements of two companies competing in the same industry follows. Darco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,000 $ 32,000 Accounts receivable, net 38,400 57.400 Merchandise inventory 84,640 128,500 5.200 7.050 Prepaid expenses Plant assets, net 360.000 310,400 Total assets $507,240 $535, 350 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $923,200 Coat of goods sold 595,100 642,500 Interest expense 8,700 10,000 Income tax expense 15,569 25,487 Net income 190,631 245, 213 5.61 5.68 Basic earnings per share Cash dividends per share 3.73 3.95 Liabilities and Equity Current liabilities Long-ter notes payable Common stock, 5 par value Retained earnings Total liabilities and equity $ 69,340 $ 95,300 82,800 105.000 170,000 216,000 185.100 119,050 $507,240 $535,350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 32,800 $ 51,200 65,600 107.400 438,000 392.500 170,000 216,000 121,289 44.477 2a. For both companies compute the profit margin ratio. (b) total asset turnover (return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their (c) 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 Complete this question by entering your answers in the tabs below. 2 Diy Yield 2A Prof Mar Ratio 2A Tot Asset Tum stio" A TRA 2A Ret on Tot Assets 2A Ret On Com Stock A Price Eam Ratio Reg 28 For both companies compute the profit margin ratio. (a) Profit Margin Ratio

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