Summary information from the financial statements of two companies competing in the same industry follows. an Company arco n pany Barco ompany Company Data from the current year's income statenent Sales Cost of goods sold Data from the current year-end balancee sheets Assets Cash $770,000 $899, 200 632,500 10,000 24,824 231,876 4.71 4.00 591,100 9,100 14,800 155,000 3.69 $ 18,500 31,000 40,400 9,500 84,640 5,100 300,000 $458,140 $555, 050 59,400 7,600 140,500 7,150 309,400 Interest expense Income tax expense Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Net income Basic earnings per share Cash dividends per share 3.73 Total assets Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets $ 30,800 52,200 Liabilities and Equity $ 71,340 $ 97,300 80,800 210,000 96,000 0 0 Current 1iabilities Long-term notes payable Common stock, $5 par value Retained earnings 113,400 372,500 246,000 63,600 458,000 210,000 105,000 246,000 106,750 Common stock, $5 par value $458,140 $555,050 Retained earnings Total 1iabilities and equity 97,660 71,674 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 share and each company's stock can be purchased at $85 per share, compute their (e) price- earnings ratios and (n dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment