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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

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 $ 888,200 Cash $ 22,000 $ 33,000 Cost of goods sold 585,100 636,500 Accounts receivable, net 34,400 51,400 Interest expense 8,600 11,000 Merchandise inventory 84,740 142,500 Income tax expense 15,185 24,521 Prepaid expenses 5,900 7,000 Net income 181,115 216,179 Plant assets, net 350,000 307,400 Basic earnings per share 4.31 4.58 Total assets $ 497,040 $ 541,300 Cash dividends per share 3.80 4.00 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 64,340 $ 91,300 Accounts receivable, net $ 28,800 $ 54,200 Long-term notes payable 79,800 113,000 Merchandise inventory 63,600 109,400 Common stock, $5 par value 210,000 236,000 Total assets 448,000 372,500 Retained earnings 142,900 101,000 Common stock, $5 par value 210,000 236,000 Total liabilities and equity $ 497,040 $ 541,300 Retained earnings 121,385 73,621 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 companys stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which companys stock you would recommend as the better investment

Please provide a complete table.

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