Required information Problem 13-5A Comparative ratio analysis LO A1, P3 The following information applies to the questions displayed below.j Summary information from the financial statements of two companies competing in the same industry follows Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current vear's income statement Sales $770,000 $880, 200 85,10 632 500 13,000 24300 162,200 210,400 $ 19,500 34,000 Cost of goods sold 37,400 57,400 Interest expense 7,900 14,800 9,100 7,200 Income tax expense 84,440 132,500 Net income 5,000 6,950 Basic earnings per share 4.51 3.81 290,000 304,400 Cash dividends per share $445,440 $542,450 3.93 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 29,80054J200 $61,340 93,300 Current notes receivable (trade) 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300 142,150 Common stock, $5 par value 55,600 107 1400 398,900 382,500 180,000 286000 98,300 93,600 $445,440 $542,450 Retained earnings 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 (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (e) 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. Answer is not complete Complete this question by entering your answers in the tabs below