$[$The following information applies to the questions displayed below.$]$

Summary information from the financial statements of two companies competing in the same industry follows.

$\backslash$table$[[,\backslash$table$[[$Barco$],[$Company$]],\backslash$table$[[$Kyan$],[$Company$]],,\backslash$table$[[$Barco$],[$Company$]],$Kyan Company$],[\backslash$table$[[$Data from the current year$-$end$],[$balance sheets$]],,,\backslash$table$[[$Data from the current year's income$],[$statement$]],,],[$Assets$,,,$Sales,$$780,000,$$$909,200],[$Cash$,$$$19,500,$$$34,000,$Cost of goods sold,$593,100,636,500],[$Accounts receivable, net,$35,400,50,400,$Interest expense,$8,700,12,000],[$Merchandise inventory,$84,940,136,500,$Income tax expense,$14,992,25,100],[$Prepaid expenses,$5,500,7,750,$Net income,$163,208,235,600],[$Plant assets, net,$310,000,309,400,$Basic earnings per share,$4\mathrm{.}80,4\mathrm{.}99],[$Total assets,$$455,340,$$$538,050,$Cash dividends per share,$3\mathrm{.}74,4\mathrm{.}00],[$Liabilities and Equity,,,Beginning$-$of$-$year balance sheet data,,$],[$Current liabilities,$$71,340,$$$98,300,$Accounts receivable, net,$$25,800,$$$51,200],[$Long$-$term notes payable,$85,800,107,000,$Merchandise inventory,$53,600,109,400],[$Common stock, $$5$ par value,$170,000,236,000,$Total assets,$448,000,382,500],[$Retained earnings,$128,200,96,750,$Common stock, $$5$ par value,$170,000,236,000],[$Total liabilities and equity,$$455,340,$$$538,050,$Retained earnings,$92,152,49,950]]$

$2$a$.$ 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 $$70$ per share, compute their $(e)$ price$-$earnings ratios and $(f)$ dividend yields.

$2$b$.$ Identify which company's stock you would recommend as the better investment.

Complete this question by entering your answers in the tabs below.

$2$A Prof Mar

$2$A Tot Asset

$2$A Ret on Tot

$2$A Ret On

$2$A Price Earn

Ratio

Turn

Assets

Equity

Ratio

$2$A Div Yield

Req $2B$

For both companies compute the profit margin ratio.

$\backslash$table$[[($a$),$Profit Margin Ratio$],[$Company$,$Numerator:,I,Denominator:,$=,$Profit margin ratio$],[,,1,,=,$Profit margin ratio$],[$Barco$,,1,,=,\%],[$Kyan$,,1,,=,\%]]$