Summary information from the financial statements of two companies competing in the same industry follows. Barco Barco Company Kyan Company Data from the current year-end Data from the current year's balance sheets Company Kyan Company Assets Cash Accounts receivable, net $ 19,500 46,500 $ 34,000 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 84,440 132,500 64,600 income statement Sales Cost of goods sold Interest expense Income tax expense $ 770,000 $ 880,200 5,000 290,000 6,950 Net income 304,400 Basic earnings per share i $445,440 $ 542,450 Cash dividends per share 585,100 7,900 14,800 24,300 162,200 210,400 4.51 5.11 3.81 3.93 632,500 13,000 Beginning-of-year balance sheet. data $ 61,340 80,800 $ 93,300 101,000. Accounts receivable, net $ 29,800 $ 54,200 Merchandise inventory 55,600 107,400 180,000 206,000. Total assets 398,000 382,500 123,300 142,150 $445,440 $ 542,450 Common stock, $5 par value Retained earnings 180,000 206,000 98,300 93,600 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (5) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.