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	$ 881,200
Cash	$ 19,500	$ 32,000	Cost of goods sold	593,100	638,500
Accounts receivable, net	39,400	55,400	Interest expense	8,200	18,000
Merchandise inventory	84,340	128,500	Income tax expense	15,185	24,327
Prepaid expenses	5,300	7,400	Net income	173,515	200,373
Plant assets, net	300,000	308,400	Basic earnings per share	5.10	4.64
Total assets	$ 448,540	$ 531,700	Cash dividends per share	3.78	3.91
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 65,340	$ 97,300	Accounts receivable, net	$ 27,800	$ 54,200
Long-term notes payable	82,800	113,000	Merchandise inventory	63,600	111,400
Common stock, $5 par value	170,000	216,000	Total assets	438,000	422,500
Retained earnings	130,400	105,400	Common stock, $5 par value	170,000	216,000
Total liabilities and equity	$ 448,540	$ 531,700	Retained earnings	85,405	73,939

2a. For both companies compute the

(a) profit margin ratio, Barco and Kyan

(b) total asset turnover, Barco and Kyan

(c) return on total assets, Barco and Kyan

(d) return on equity Barco and Kyan

Assuming that each companys stock can be purchased at $100 per share, compute their

(e) price-earnings ratios Barco and Kyan

(f) dividend yields Barco and Kyan

2b. Identify which companys stock you would recommend as the better investment.