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 years income statement
Assets			Sales	$ 790,000	$ 884,200
Cash	$ 22,500	$ 33,000	Cost of goods sold	591,100	632,500
Accounts receivable, net	39,400	52,400	Interest expense	8,800	16,000
Merchandise inventory	84,840	130,500	Income tax expense	15,185	24,410
Prepaid expenses	5,800	7,350	Net income	174,915	211,290
Plant assets, net	360,000	311,400	Basic earnings per share	5.14	4.48
Total assets	$ 512,540	$ 534,650	Cash dividends per share	3.72	3.97
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 68,340	$ 101,300	Accounts receivable, net	$ 27,800	$ 50,200
Long-term notes payable	82,800	115,000	Merchandise inventory	55,600	107,400
Common stock, $5 par value	170,000	236,000	Total assets	438,000	382,500
Retained earnings	191,400	82,350	Common stock, $5 par value	170,000	236,000
Total liabilities and equity	$ 512,540	$ 534,650	Retained earnings	142,965	58,444

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 companys stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which companys stock you would recommend as the better investment.

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 $90 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. For both companies compute the profit margin ratio