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[The following information applles to the questions displayed below] Summacy information from the financial statements of two companies competing in the same industry follows: or

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[The following information applles to the questions displayed below] Summacy information from the financial statements of two companies competing in the same industry follows: or both companies compute the (d) profit margin rato, (b) total asset turnover. ( d return on total assets, ond (d) return on equity. Assuming that each company's st and (9 dividend yields. dentify which company's stock you would recommend as the better imvestment. Complete this question by entering your answers in the tabs below. For both companies compute the retum on equity, Barco Company Kyan Company Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share $790,000 $967,200 Cash dividends per share 594,100 7,900 646,500 14,000 15,185 25,045 172,815 221,655 4.32 4.70 Beginning-of-year balance sheet data 3.76 4.00 Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value $26,800 $55,200 55,600 115,400 378,000 362,500 200,000 236,000 Retained earnings 79,385 63,645

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