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 year's income statement Assets Sales $780,000 $885,200 Cash $ 21,000 $ 36,000 Accounts receivable, net 34,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities " Long-term notes payable Common stock, $5 par value 5,500 350,000 $495,840 $ 64,340 50,800 84,940 56,400 136,500 7,300 Cost of goods sold Income tax expense Net income 585,100 646,500 Interest expense 8,000 19,000 14,992 24,438 171,908 195,262 309,400 Basic earnings per share $ 545,600 Cash dividends per share Retained earnings 190,000 160,700 $ 96,300 107,000 206,000 Accounts receivable, net, Merchandise inventory Total assets 136,300 Common stock, $5 par value Total liabilities and equity $495,840 $ 545,600 4.52 4,74 3.75 3.98 Beginning-of-year balance sheet data $28,800 $ 58,200 57,600 109,400 458,000 382,500 190,000 206,000 Retained earnings 131,292 105,014 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and (dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tor Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 28