Data Table X - Selected income statement data for the current year: Best Digital Very Zone $ 420,115 $ 496,035 1211,000 260,000 Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income 0 17,000 e 60,000 74,000 ca Print Done over for both companies. (Round your answers to two decimal places, X.XX.) sir i Data Table - e bl zo he Selected balance sheet and market price data at the end of the current year: nce Best Digital Very Zone Current Assets: e the Cash mula Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 25,000 $ 40,000 37,000 65,000 22,000 17,000 17,000 47,000 102,000 14,000 est rat 189,000 $ 197,000 Total Current Assets Total Assets Total Current Liabilities bute the ormula 263,000 $ 104,000 104,000 326,000 98,000 129,000 Total Liabilities Common Stock: $1 par (11,000 shares) $1 par (15,000 shares) entory tu 11,000 15,000 or enter Print Done Data Table - X nasir ne b price you ha y zo s of ra mes Common Stock: ance 11,000 15,000 ate the $1 par (11,000 shares) $1 par (15,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 159,000 197,000 rmula 92.65 133.11 1.20 1.10 test rat Selected balance sheet data at the beginning of the current year: Best Digital Very Zone Balance sheet: mpute the Accounts Receivables; net Merchandise Inventory 42,000 $ 81,000 262,000 48,000 88,000 277,000 formula Total Assets Common Stock: entory tu 11,000 $1 par (11,000 shares) $1 par (15,000 shares) 15,000 et or enter Print Done 0 Requirements - X pute the formula -test rath 1. Compute the following ratios for both companies for the current year: a. Acid-test ratio b. Inventory turnover C. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock f. Pricelearnings ratio g. Dividend payout 2. Decide which company's stock better fits your investment strategy. ompute the ne formula Print Done inventory tul Best Digital Very Zone Question Help Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Best Digital Corp. and Very Zone, Inc. and have assembled the following data. E (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Read the requirements. na Requirement 1a. Compute the acid-test ratio for both companies for the current year. cci Begin by selecting the formula to compute the acid-test ratio. Acid-test ratio Opel Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, X.XX.) Best Digital Very Zone Acid-test ratio folio Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory turnover 26,2 Now, compute the inventory turnover for both companies. (Round your answers to two decimal places, X.XX.) Choose from any list or enter any number in the input fields and then continue to the next question. 09/14 Assume that you are purchasing an investment and have Your strategy is to invest in companies that have low decided to invest in a company in the digital phone price/earnings ratios but appear to be in good shape business. You have narrowed the choice to Best Digital financially. Assume that you have analyzed all other fa Corp. and Very Zone, Inc. and have assembled the and that your decision depends on the results of ratio following data. analysis. (Click to view the income statement data.) Read the requirements. (Click to view the balance sheet and market price data.) Now, compute the inventory turnover for both companies. (Round your answers to two decimal places, X.XX.) Best Digital Very Zone Inventory turnover "Requirement 1c. Compute the days' sales in receivables for both companies for the current year Begin by selecting the formula to compute the days' sales in receivable. Days' sales in receivables = Now, compute the days' sales in receivables for both companies. (Round interim calculations to two decimal places and your final answers to the nearest whole day.) Best Digital Very Zone Days' sales in receivables 20 Requirement 1d. Compute the debt ratio for both companies for the current year. Choose from any list or enter any number in the input fields and then continue to the next question. Question Help Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Best Digital Corp. and Very Zone, Inc. and have assembled the following data. (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Read the requirements. Requirement 1d. Compute the debt ratio for both companies for the current year. Begin by selecting the formula to compute the debt ratio. ng Debt ratio per Now, compute the debt ratio for both companies. (Round your answers to the one tenth of a percent, X.X%.) Best Digital Very Zone Debt ratio % lio Requirement 1e. Compute the earnings per share of common stock for both companies for the current year. Begin by selecting the formula to compute the earnings per share of common stock. Eamings per share of common stock 5, 20 Choose from any list or enter any number in the input fields and then continue to the next question. Question Help er Assume that you are purchasing an investment and have Your strategy is to invest in companies that have low decided to invest in a company in the digital phone price/earnings ratios but appear to be in good shape Fil business. You have narrowed the choice to Best Digital financially. Assume that you have analyzed all other factors Corp. and Very Zone, Inc. and have assembled the and that your decision depends on the results of ratio following data. analysis, ni (Click to view the income statement data.) Read the requirements. (Click to view the balance sheet and market price data.) Now, compute the earnings per share of common stock for both companies. (Round your answers to the nearest cent.) ern Best Digital Very Zone Acci Earings per share of common stock Opet Requirement 1f. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the price/earnings ratio. Pricelearnings ratio tfolio Now, compute the price/earnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Best Digital Pricelearnings ratio Requirement 1g. Compute the dividend payout for both companies for the current year. 26, 20 Very Zone Choose from any list or enter any number in the input fields and then continue to the next question. 2 Requirement 1g. Compute the dividend payout for both companies for the current year. na Begin by selecting the formula to compute the dividend payout. CC Dividend payout Now, compute the dividend payout for both companies. (Round interim answers to two decimal places, X.XX, and your "per final answers to the nearest whole percent, X%.) Best Digital Very Zone Dividend payout % % Folio Requirement 2. Decide which company's stock better fits your investments strategy. common stock seems to fit the investment strategy better. Its price/earnings ratio is and On the majority of the ratios, 26, 20 Choose from any list or enter any number in the input fields and then continue to the next