[The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. income statement Sales Cost of goods sold Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end Data from the current year's balance sheets Assets Cash $ 20,500 $ 35,000 $ 800,000 593,100 Accounts receivable, net Merchandise inventory 39,400 85,040 8,200 $ 886,200 640,500 12,000 132,500 7,350 Net income 15,377 24,465 183,323 209,235 5.39 4.43 3.77 4.02. 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 5,900 59,400 320,000 313,400 $470,840 $ 547,650 $ 63,340 $ 101,300 84,800 170,000 152,700 Interest expense Income tax expense Basic earnings per share. Cash dividends per share. Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory 101,000 236,000 Total assets 109,350 $470,840 $ 547,650 Common stock, $5 par value Retained earnings $ 26,800 $55,200 61,600 111,400 398,000 392,500 170,000 236,000 97,557 89,859 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 $85 per share, compute their (e) price-earnings ratios and (1) dividend yields. 2b. Identify which company's stock you would recommend as the better investment.