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)		1,890,000				1,220,000
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?