1 of 4 (4 complete) igital phone business. collowing data. Your strategy is to invest in companies that have low pricelearnings Assume that you have analyzed all other factors and that your decisi Read the requirements. 0 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. Pricelearnings ratio g. Dividend payout 2. Decide which company's stock better fits your investment strategy. pla aar. Print Done to two decimal places and your final answers to the nearest whole day.) PF17-28A (similar to) 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 Digitized Corp. and Every 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.) Requiremen Digitized Every Zone Acid-test ratio 1.04 0.80 Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory tumover Cost of goods sold + Average merchandise inventory Now, compute the inventory turnover for both companies. (Round your answers to two decimal pla Digitized Every Zone Inventory tumover 2.82 2.76 1. Compute the a. Acid-test b. Inventory C. Days' sale d. Debt ratio e. Eamings pe f. Price/earnir g. Dividend pa 2. Decide which co 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 = 365 + Accounts receivable turnover ratio Now.compute the days' sales in receivables for both companies. (Round interim calculations to two decimal places and your fu Digitized Every Zone Days' sales in receivables Enter any number in the edit fields and then click Check Answer. parts the requirements. very Zone Requirements 0.80 es for Data Table 1 se inve Selected income statement data for the current year: our ang Every Z 2.76 Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Digitized 421,940 $ 209,000 0 compan Every Zone 497,860 259,000 14,000 72,000 able. er ratio 58,000 Round interim calculations to two decimal places and your final answers to the nearest WNTOTA Print Done Every Zone i Data Table X Selected balance sheet and market price data at the end of the current year. Digitized Every Zone Current Assets: Cash Short-term Investments 15,000 Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 26,000 $ 40,000 40,000 65,000 23,000 15,000 47,000 102,000 13,000 Total Current Assets $ 194,000 $ 192,000 $ 261,000 $ 102,000 102,000 326,000 96,000 130,000 Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (13,000 shares) $2 par (17,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 13,000 159,000 66.90 34.000 196,000 93.28 1.00 0.90 Print Done