[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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $ 38,000 Accounts receivable, net 33,400 57,400 Merchandise inventory 84,440 130,500 Prepaid expenses 5,800 7,500 Plant assets, net 350,000 306,400 Total assets $493,640 $539,800 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $913,200 Cost of goods sold 588,100 634,500 Interest expense 7.600 14,000 Income tax expense 14,800 25,211 Net income 159,500 239,489 Basic earnings per share 3.62 6.11 Cash dividends per share 3.80 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 94,300 78,00 101,000 220,000 196,000 132,500 148.500 $493,640 $539,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 $ 53,200 53,600 109,400 438,000 392,500 220,000 196,000 140,200 65,811 and ich return on common 2a. For both companies compute the () profit margin ratio. (b) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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 Price Eam Ratio 2A DIV Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Com Stock For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator. Choose Denominator = Profit margin ratio = Profit margin ratio Barco % 2 Pro 2A Tot Asset Turn >