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 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 20,000 36,400 85,040 5,700 300,000 $ 447,140 $ 34,000 51,400 134,500 7,750 304,400 $ 532,050 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 dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 790,000 592,100 7,600 15,185 175, 115 5.47 3.73 $ 905,200 642,500 15,000 24,990 222,710 5.68 4.02 $ 67,340 83,800 160,000 136,000 $ 447,140 $ 91,300 111,000 196,000 133, 750 $ 532,050 $ 25,800 61,600 448,000 160,000 80,245 $ 51,200 113,400 402, 500 196,000 68,624 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 $95 per share, compute their (e) price-earnings ratios and (1) 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Profit Margin Ratio Denominator: Numerator: 1 = = Profit margin ratio Profit margin ratio % Barco / = Kyan 1 2A Tot Asset Turn