Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company Company Data from the current year's income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $770,000 $907,200 588,100 630,500 8,500 16,000 14,80025,045 158,600 235,655 45 3.93 18,500 37,000 Cost of goods sold 36,400 60,400 Interest expense 9,800 8,200 Income tax expense 84,840 134,500 Net income 7,100 Basic earnings per share 3.60 3.74 5,800 350,000305,400 Cash dividends per share $505,340 $552,600 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 29,800 $ 51,200 $67,340 $103,300 Current notes receivable (trade) 83,800 105,000 Merchandise inventory 220,000 216,000 Total assets 134,200128, 300 Common stock, $5 par value 63,600 107,400 438,000 412,500 220,000 216,000 140,160 62,421 $505,340 $552, 600 Retained earnings 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) price- earnings ratios and ( 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. 2A Ret On2A Price Earn Com Stock 2A Pro Marg 2A Tot Asset 2A Ret on Tot Turn 2A Div Yield Req 2B Ratio Assets Ratio Equity For both companies compute the profit margin ratio Profit Margin Ratio Choose Denominator: Profit margin ratio CompanyChoose Numerator: Profit margin ratio = Barco Kyan 2A Tot Asset Turn>