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 Best Digital 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.) 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 Now compute the acid-test ratio for both companies (Round your answers to two decimal places XXX) Best Digital Every Zone Acid-test ratio Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory turnover Data Table Selected income statement data for the current year: Every Zone Net Sales Revenue (all on credit) $ Best Digital 421,940 $ 212,000 494,940 Cost of Goods Sold 255,000 Interest Expense 0 17,000 Net Income 54,000 68,000 Data Table - X ec . Selected balance sheet and market price data at the end of the current year. -) Best Digital Every Zone Current Assets: pa Cash $ 26,000 $ 21,000 Short-term Investments 0. Accounts Receivables, Net Merchandise Inventory 43,000 36,000 65,000 21,000 18,000 45,000 97,000 14,000 nd Prepaid Expenses 1 GA Total Current Assets 191,000 $ 195.000 Total Assets $ $ Col Total Current Liabilities Total Liabilities 261,000 $ 102,000 102,000 329,000 96,000 134,000 und Common Stock 191,000 $ 195,000 Total Current Assets $ $ Total Assets 261,000 $ 329,000 Total Current Liabilities Total Liabilities 102,000 102,000 96,000 134,000 Common Stock: 11,000 32,000 $1 par (11,000 shares) $2 par (16,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 159,000 195,000 88.38 114.75 1.10 0.70 Selected balance sheet data at the beginning of the current year. Best Digital Every Zone Balance sheet i Data Table > 32,000 159,000 195,000 $2 par (16,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 88.38 114.75 1.10 0.70 Selected balance sheet data at the beginning of the current year Best Digital Every Zone Balance sheet $ 41.000 $ 81,000 48,000 90,000 271,000 257,000 Accounts Receivables net Merchandise Inventory Total Assets Common Stock $1 par (11.000 shares) $2 par (16,000 shares) 11,000 32.000 Your strategy is to invest in companies that have low pricelearnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis Read the requirements i Requirements - X 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