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 Zone Network, Inc. and have assembled the following data. (Click to view the income statement data.) (Click to view the balance sheet and market price data.) 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 =(Cash + Short-term investments + Accounts receivable, net) - Total current liabilities Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, XXX) Digitized Zone Network Acid-test ratio Data table Selected income statement data for the current year: Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Digitized Zone Network 416,830 $ 494,940 212,000 255,000 17,000 54,000 70,000 Print Done Data table Selected balance sheet and market price data at the end of the current year. Digitized Zone Network Current Assets: Cash $ 23,000 $ 15,000 Short-term Investments 42,000 18,000 Accounts Receivables, Net 36,000 43,000 Merchandise Inventory 64,000 101,000 Prepaid Expenses 18,000 15,000 $ Total Current Assets 183,000 $ 192,000 Total Assets $ 260,000 $ 325,000 Total Current Liabilities 102,000 99,000 Total Liabilities 102,000 134,000 Common Stock $1 par (10,000 shares) 10,000 $1 par (14,000 shares) 14,000 Total Stockholders' Equity 158,000 191,000 Market Price per Share of Common Stock 102.60 115.00 Dividends Paid per Common Share 0.90 0.70 Selected balance sheet data at the beginning of the current year: Digitized Zone Network Balance sheet: Accounts Receivables, net Merchandise Inventory Print Done 38,000 $ 53,000 81,000 88,000 -X in c all ot Data table X I Short-term Investments 42,000 18,000 Accounts Receivables, Net 36,000 43,000 Merchandise Inventory 64,000 101,000 18,000 15,000 Prepaid Expenses $ 183,000 $ 192,000 Total Current Assets Total Assets $ 260,000 $ 325,000 Total Current Liabilities 102,000 99,000 Total Liabilities 102,000 134,000 Common Stock $1 par (10,000 shares) 10,000 $1 par (14,000 shares) 14,000 Total Stockholders' Equity 158,000 191,000 Market Price per Share of Common Stock 102.60 115.00 Dividends Paid per Common Share 0.90 0.70 Selected balance sheet data at the beginning of the current year. Digitized Zone Network Balance sheet Accounts Receivables, net Merchandise Inventory Total Assets 38,000 $ 53,000 81,000 88,000 258,000 272,000 Common Stock $1 par (10,000 shares) 10,000 $1 par (14,000 shares) 14,000 Print Done