[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 Barco Company Kyan Company Company Kyan Company Data from the current year-end Data from the current year's income balance sheets Assets Sales Cash $ 20,500 $ 33,000 Accounts receivable, net 35,400 55,400 Interest expense Merchandise inventory: 84,740 130,500 statement Cost of goods sold Income tax expense $ 790,000 $ 908,200 588,100 634,500 9,200 18,000 15,185 25,073 Prepaid expenses. Plant assets, net 5,900 310,000 7,600 Net income 177,515 230,627 304,400 Basic earnings per share 4.23 5.88 Total assets Liabilities and Equity Current liabilities Long-term notes payable. Common stock, $5 par value Retained earnings $ 456,540 $530,900 $ 62,340 $ 102,300 85,800 107,000 210,000 196,000 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 3.77 3.97 $ 30,800 $ 54,200 59,600 111,400 428,000 392,500 98,400 125,600 Total liabilities and equity $ 456,540 $530,900 Connon stock, $5 par value Retained earnings 210,000 196,000 79,225 50,597 M 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 $90 per share, compute their (e) price-earnings ratios and (dividend yields. 2b. Identify which company's stock you would recommend as the better investment. 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 $90 per share, compute their (e) price-earnings ratios and (5) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio. (a) Company Numerator: Barco Kyan 2A Price Earn Ratio 2A Div Yield Req 28 Profit Margin Ratio Denominator: Profit margin ratio Profit margin ratio 0% 0% <2a prof mar ratio 2a tot asset turn>