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 Cash $ 19,500 $ 34,000 35,400 58,400 130,500 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 85,040 5,300 360,000 7,650 $ 505,240 $ 536,950 $ 68,340 $ 102,300 82,800 170,000 111,000 226,000 184,100 97,650 Total liabilities and equity $ 505,240 $ 536,950 Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 790,000 $ 919,200 585,100 646,500 7,800 12,000 15,185 25,376 181,915 235,324 306,400 5.35 3.74 5.21 4.01 $ 29,800 $ 56,200 63,600 113,400 398,000 412,500 170,000 226,000 129,345 43,578 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 $100 per share, compute their (e) price-earnings ratios and (f) 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 Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator: 2A Price Earn Ratio 2A Div Yield Req 2B Profit margin ratio Profit margin ratio 0% 0% 2A Prof Mar Ratio 2A Tot Asset Turn >