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	$	780,000		$	884,200
Cash	$	20,500		$	37,000			Cost of goods sold		588,100			644,500
Accounts receivable, net		33,400			60,400			Interest expense		7,800			18,000
Merchandise inventory		84,340			130,500			Income tax expense		14,992			24,410
Prepaid expenses		5,600			7,050			Net income		169,108			197,290
Plant assets, net		300,000			303,400			Basic earnings per share		4.70			4.79
Total assets	$	443,840		$	538,350			Cash dividends per share		3.73			3.94
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	63,340		$	103,300			Accounts receivable, net	$	30,800		$	52,200
Long-term notes payable		85,800			101,000			Merchandise inventory		63,600			107,400
Common stock, $5 par value		180,000			206,000			Total assets		428,000			382,500
Retained earnings		114,700			128,050			Common stock, $5 par value		180,000			206,000
Total liabilities and equity	$	443,840		$	538,350			Retained earnings		79,872			93,088

rev: 06_19_2020_QC_CS-217192

2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that each companys stock can be purchased at $105 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which companys stock you would recommend as the better investment.