Summary information from the financial statements of two companies competing in the same industry follows. 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 Barco Kyan Company Company $ 22,500 $ 31,000 33,400 58,400 84,740 134,500 5,600 7,650 280,000 310,400 $ $ 426,240 541,950 $ 65,340 $ 93,300 80,800 99,000 170,000 216,000 110,100 133,650 $ $ 426,240 541,950 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 Kyan Barco Company Company Complete this question by entering your answers in the tabs below. $ 780,000 593, 100 7,800 14,992 164, 108 4.83 3.72 $ 898, 200 630,500 16,000 24,797 226,903 5.25 3.97 $ 26,800 $ 53,200 61,600 107,400 388,000 412,500 170,000 216,000 72,472 78,251 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 $80 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.

Summary information from the financial statements of two companies competing in the same industry follows. 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (C) refurn on total assets, and (d r refurn on equity. Assuming that eachi company's stock can be purchased at $80 pet share, cpmpute heir (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment