For the c Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) 416,830 $ 497,860 Cost of Goods Sold 206,000 259,000 Interest Expense 19,000 Net Income 48,000 76,000 Print Done %24 price/eamings ratios but that your decision deper data.) Selected balance sheet and market price data at the end of the current year: Digitized Very Network companies for Current Assets: st ratio. Cash %24 25,000 $ 20,000 Short-term Investments 42,000 18,000 Accounts Receivables, Net 38,000 47,000 Merchandise Inventory 65,000 100,000 Prepaid Expenses 21,000 16,000 2$ 191,000 $ 201,000 Total Current Assets Total Assets 261,000 $ 325,000 Total Current Liabilities 101,000 98,000 Total Liabilities 101,000 133,000 Common Stock: 10,000 $1 par (10,000 shares) $1 par (16,000 shares) 16,000 160,000 192,000 Total Stockholders' Equity 72.00 104.50 Market Price per Share of Common Stock meck Answer. Print Done or Requirements 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. Price/earnings ratio g. Dividend payout Decide which company's stock better fits your investment strategy. 2. Print Done ver. Clear All Requirement 1a. Compute the acid-test ratio for both companies for the current year. Begin by selecting the formula to compute the acid-test ratio. Acid-test ratio 365 / Accounts receivable turnover ratio Annual dividend per share /Eamings per share (Cash + Cash equivalents) / Total current liabilities (Cash + Short-term investments + Accounts receivable, net) / Total current liabilities Cost of goods sold / Average merchandise inventory Market price per share of common stock / Eamings per share (Net income - Preferred dividends) / Weighted average number of common share outstanding Total current assets / Total current liabilities Total liabilities / Total asset