Question 1 Marks 10 The financial data of Cougar Clothing and Breakout Store for the year 2020 are given below. The annual report showed that both stores declared same amount of dividends to net earnings in the year 2020 and consequently stockholders' equity remains unchanged. The two companies are in the clothing business. Cougar Clothing Breakout Store Total liabilities Total assets Sales (all on credit) 200,000 100,000 800,000 400,000 1,800,000 1,200,000 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%C 5% Compute and critically analyse the following for each company and state a brief conclusion about which company is in the stronger financial position. a) Net Income b) Net Income as percentage of Stockholder Equity c) Account Receivable turnover d) Inventory turnover