PC-28A Using ratios to decide between two stock investments Assume that you are rmrchsing an investment and have decided to invest in a com- Pany in the digital phone You have narrowed the choice to Digitalized ard Every Zone, Inc. and have assembled the following data. Selected income statement data for the current year: Net Sales Revente (all on credit) Ccst of Sold Interest Expense Net Income Digitalized S 423,035 210000 51,000 S 493,845 19,000 72,000 Selected balance sheet and market price data at the end of the current year: Current Assets: Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock: SI par (12,000 shares) SI par (17,000 shares) Total Equity Market Price Share of Commun Stock Dividends Paid per Comrnon Share Dig ital i zed S 24000 40 ooo 40 ooo 66, ooo 23, coo S 193000 S 260 coo 105,000 105,000 12,000 161,000 1.10 Selected balance sheet data at the beginning of the current year: Ba Iance Sheet: Accounts Receivable, net Inventory Total Assets Comrnon Stock: SI par (12,000 shares) SI par (17,000 shares) Dig ital i zed S 41,000 81,000 261,000 12,000 Ever y e S 17,000 14,000 48, coo 1 Zoco S 32Jooo 96, ooo 128,000 17,000 195,000 114.48 Ever y S 54,000 272,000 17,000