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Required information 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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $780,000 $905, 200 Cash $ 19,500 $ 37,000 Cost of goods sold 587,100 638,500 Accounts receivable, net 39,400 57,400 Interest expense 7,500 14,000 Merchandise inventory 84,240 140,500 Income tax expense 14,992 24,990 Prepaid expenses 5,200 7,000 Net Income 178,408 227,718 Plant assets, net 360,000 302,400 Basic earnings per share 4.26 5.53 Total assets $508,340 $549,300 Cash dividends per share 3.77 4.00 Liabilities and Equity Current Liabilities Long-tern notes payable Common stock, 55 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 66,340 5 91,300 Accounts receivable, net 86,800 113,000 Merchandise inventory 200,000 206,000 Total assets 155,200 139,000 Connon stock, $5 par value $588,340 $549,380 Retained carnings $ 30,800 $ 56,200 53,600 117,400 428,000 382,500 200,000 206,000 135,592 76,690 2a. For both companies compute the () profit margin ratio, (b) total asset turnover (return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (@) 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

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