AumSave . err [fa-'9VGEJW "a unsure Q ec' Home Insert Draw Design Layout References Mailings Review View 9 Tell me '3 Share a Comments [on V {XE} Times New" V 12 " AA AV A3 " A0 AaEchDdEe AaBchDc AaBchDdEs Aa Bb( ) : Q \\'J V 4' Paste 6 B I g v ab x2 x2 A v I v A v Normal No Spacing Headingi Heading 1 Title Styles Dictate Sensitivity Editor / Pane Selected data from the nancial statements of Puerto Rico Co. and PM 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 Puerto Rico Portugal Stone Co. Products Total liabilities $ 200,000 $ 100,000 Total Assets 800,000 400,000 Sales (all on credit) 1,990,000 1,250,000 Average inventory 240,000 140,000 Average receivables 200,000 100,000 Gross prot 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 stockholder's equity for each company 0. Compute the accounts receivable turnover for each company d. Compute the inventory turnover for each company e. Which company is in a stronger nancial position? Page 5 of 7 883 words I]? English (United States) Focus n 1250 =_= E - \\/ + 140%