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. Total liabilities Total assets Sales (all on credit) Average inventory Average receivables Gross profit as a percentage of sales Operating expenses as a percentage of sales Net income as a percentage of sales Italian Marble Co. $ 200,000 800,000 1,910,000 240,000 200,000 Brazil Stone Products $ 100,000 400,000 1,240,000 140,000 100,000 305 400 360 258 58 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? Total liabilities Total assets Sales (all on credit) Average inventory Average receivables Gross profit as a percentage of sales Operating expenses as a percentage of sales Net income as a percentage of sales Marble Co. $ 200,000 800,000 1,910,000 240,000 200,000 408 Products $ 100,000 400,000 1,240,000 140,000 100,000 309 258 0.52 points 368 58 eBook References 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