Italian Marble Co.				Brazil Stone Products
Total liabilities	$	200,000			$	100,000
Total assets		800,000				400,000
Sales (all on credit)		1,910,000				1,120,000
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?