[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 $ 37,000 Accounts receivable, net 35,400 59,400 Merchandise inventory 84,540 138,500 Prepaid expenses 5,500 7,500 Plant assets, net 340,000 312,400 Total assets $485,440 5554,800 Barco Kyan Company Company Data from the current year's incone statement Sales $780,000 $914,200 Cost of goods sold 595, 100 638,500 Interest expense 7,500 12,000 Income tax expense 14,992 25,238 Net income 162,408 238,462 Basic earnings per share 5.08 5.79 Cash dividends per share 3.81 4.01 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 91,300 B0,800 111,000 160,000 206,000 175,300 146,500 5485,440 3554,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Connon stock, 35 par value Retained earnings $ 27,800 $ 53,200 57,600 105,400 409,000 372,500 160,000 206,000 134,812 73.be Problem 13-5A Part 2 2a. For both companies compute the (o profit margin ratio, (o) total asset turnover (return on total assets, and (c) return on common stockholders equity Assuming that each company's stock can be purchased at $100 per share, compute their (el price-earnings ratios and ( 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 Prof Mar Ratio 2A Tot Asset 2A Reton Tot Turn 2A et on Com Stock 2A Price tam Ratio ZA Div Yield Reg 20 For both companies compute the profit margin ratio