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 Digitalized Corp. and Every 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 $1$a$.$ 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 $=$ Total current assets $-$ Total current liabilities

Now, compute the acid$-$test ratio for both companies. $($Round your answers to two decimal plad

Digitalized

Every Network

Acid$-$test ratio

Requirement $1$b$.$ Compute the inventory turnover for both companies for the current year.

Begin by selecting the formula to compute the inventory turnover.