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Selected data from the financial statements of Italian Marble Co

Accounting

Selected data from the financial statements of Italian Marble Co. and Brazil Stone Products for the year just ended follow. Assume that for both companies dividends declared were equal in amount to net earnings during the year and therefore stockholders' equity did not change. The two companies are in the same line of business. 
Italian Marble Co. Brazil Stone Products Total liabilities $ 200,000 $ 100,000 Total assets 800,000 400,000 Sales (all on credit) 1,970,000 1,170,000 Average inventory 240,000 140,000 Average receivables 200,000 100,000 Gross profit as a percentage of sales 40% 30% Operating expenses as a percentage of sales 36% 25% Net income as a percentage of sales 3% 5% 
a. Compute the net income for each company. b. Compute the net income as a percentage of stockholders' equity for each company. c. Compute the accounts receivable turnover for each company. d. Compute the inventory turnover for each company. e. Which company is in a stronger financial position? 

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