3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Part 2 of 2 6.68 points Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 18,500 $ 31,000 Accounts receivable, net 33,400 51,400 Merchandise inventory 84,440 130,500 Prepaid expenses 5,900 7,150 Plant assets, net 340,000 312,400 Total assets $482, 240 $532,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $890,200 Cost of goods sold 596,100 652,500 Interest expense 8,300 11,000 Income tax expense 14,800 24,576 Net income 150,800 202, 124 Basic earnings per share 3.77 4.91 Cash dividends per share 3.81 3.95 1 Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 $ 54,200 Merchandise inventory 63,600 113,400 Total assets 448,000 372,500 Common stock, $5 par value 200,000 206,000 Retained earnings 128,700 78,766 Ask Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 95,300 85,800 113,000 200,000 206,000 127, 100 118, 150 $482,240 $532,450 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 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