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Hello! Could someone help me with this? Im confused. Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1

Hello! Could someone help me with this? Im confused.

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Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) 3 451,000 $ 327,000 Current liabilities $ 80,000 $ 100,000 Bonds payable, 12% 100,000 50,000 Capital stock, $5 par value 100,000 100,000 Retained earnings 171,000 77,000 Total liabilities & stockholders' equity 3 451,000 $ 327,000 Dividends of $16,000 were declared and paid in year 2. a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.) b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.) c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.) Selected data from the nancial statements of ltalian Marble Co. and Brazil Stone Products for the yearjust 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. Brazil Italian stone Marble Co. 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% 3. 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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