Selected data from the financial statements of Italian Marble Co. and Brazil Sto

Question

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.

         
   

      

Compute the net income for each company. (Omit the "$" sign in your response.)

      

      

Compute the net income as a percentage of stockholder's equity for each company. (Round your answers to the nearest whole percent. Omit the "%" sign in your response.)

    
   

      

Compute the accounts receivable turnover for each company. (Round your answers to the nearest whole number.)

      

      

Compute the inventory turnover for each company. (Round your answers to 1 decimal place.)

      

Italian
Marble Co. Brazil Stone Products    Total liabilities $ 200,000 $ 100,000    Total assets 800,000 400,000    Sales (all on credit) 1,960,000 1,150,000    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 %

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