[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 Cash Accounts receivable, net $ 21,500 38,400 $ 36,000 Merchandise inventory Prepaid expenses Plant assets, net 84,340 5,900 280,000 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 430,140 $ 538,850 $ 61,340 $ 90,300 85,800 170,000 113,000 107,000 226,000 Total assets 115,550 Total liabilities and equity $ 430,140 $ 538,850 53,400 138,500 7,550 303,400 Sales 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. Common stock, $5 par value Retained earnings $ 800,000 589,100 9,200 $ 888,200 644,500 16,000 15,377 24,521 186,323 203,179 5.48 4.50 3.74 3.96 $ 29,800 $ 54,200 55,600 111,400 448,000 382,500 170,000 226,000 53,837 91,363 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 $100 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.