[The following information applies to the questions displayed below.] 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 year's income statement Assets Sales $ 760,000 $ 890,200 Cash Accounts receivable, net $ 19,000 34,400 $ 35,000 592,100 8,000 642,500 10,000 Merchandise inventory Prepaid expenses Plant assets, net 84,940 5,900 300,000 56,400 130,500 7,800 308,400 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 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 444,240 $ 538,100 $ 60,340 83,800 200,000 100,100 $ 96,300 115,000 206,000 120,800 Total liabilities and equity $ 444,240 $ 538,100 14,608 24,576 145,292 213,124 3.63 3.79 5.17 3.92 $ 25,800 $ 52,200 61,600 111,400 408,000 372,500 200,000 206,000 106,408 69,180 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $75 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.