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 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 a percentage of stockholders’ equity.
c. Accounts receivable turnover.
d. Inventoryturnover.

  • CreatedApril 17, 2014
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