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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

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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 2. Decide which company's stock better fits your investment strategy. Data table Selected income statement data for the current year: Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Print $ Digitalized 423,035 $ 210,000 0 48,000 Done Every Network 497,860 261,000 17,000 72,000 Current Assets: Cash Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (10,000 shares) $1 par (16,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share Print $ S 300 Digitalized Every Network 18,000 15,000 45,000 102,000 14,000 194,000 327,000 96,000 134,000 16,000 193,000 103.50 0.80 25,000 $ 43,000 36,000 66,000 20,000 190,000 $ 266,000 $ 101,000 101,000 10,000 165,000 72.00 1.20 Done Total Liabilities Common Stock: $1 par (10,000 shares) $1 par (16,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share e beginning of the current year: Balance sheet: Accounts Receivables, net Merchandise Inventory Total Assets Common Stock: $1 par (10,000 shares) $1 par (16,000 shares) $ 101,000 10,000 165,000 72.00 1.20 Digitalized 134,000 16,000 193,000 103.50 0.80 Every Network 41,000 $ 81,000 258,000 10,000 53,000 87,000 277,000 16,000

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