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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 18,500 $ 35,000 39,400 56,400 84,640 142,500 5,100 7,050 310,000 304,400 $ 457,640 $ 545,350 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividendo per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total asseta Common stock, 55 par value Retained earnings $ 810,000 592,100 8,700 15,569 193,631 5.38 3.74 $ 908, 200 650,500 14,000 25,073 218,627 4.84 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 91,300 84,800 103,000 180,000 226.000 128,500 125,050 $ 457,640 9 545,350 $ 26,800 55,600 408,000 180,000 69,509 $ 51,200 115,400 412,500 226,000 87,223 2a. For both companies compute the () profit margin ratio. (b) total asset turnover (a return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $80 per share, compute their (@) price-earnings ratios and ( dividend yields 26. Identity 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield For both companies compute the profit margin ratio. Reg 28 Company Numerator Pro Margin Ratio Denominator Barco Kyan Profit margin ratio Profit margin ratio 0% 0% PROUD 2A Tot Asset Turn >