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 Digital Plus Corp. and Every Network Inc. and have assembind the following data Click to view the income statement data) Click to view the balance sheet and market price data) Your strategy is to invest in companies that have low price warnings ration but appear to be in good shape financial Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis Read the requirements Requirement 1a. Compute the scid-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) Digital Plus Every Network Acid-bestrato Requirement 16. Compute the inventory turnover for both compared for the current you. Begin by colecting the formula to compute the inventory tumover Inventory burnover Now.compute the inventory tumover for both companies (Round your mowers to two decimal places XXX Digital Plus Every Network Inventory turnover Requirement 1o. Compute me day sales in receivables for both companies for the current year, Begin by selecting the formula to compute the days in renivable Days in receivabios Now.compute the days' sales in receivables for both companies (Round interim calculations to two decimal places and your final newers to the nearest Whole day) Digital Plus Every Network Day sales in recevables Data Table (Click to view the income statement data) (Click to view the balance sheet and market price data. Selected balance sheet and market price date at the end of the current year Requirements 1. Compute the following ratios for both companies for the current year Acid-test ratio b. Inventory turnover Days' sales in receivables d Debt ratio e Earings per share of common stock 1. Price earnings ratio Dividend payout 2. Decide which company's stock better fits your investment strategy Digital Plus Every Network Current Ass Cash 27,000 $ 20,000 Shonorm Investments 40.000 15,000 Account Roonivable. Not 40.000 45,000 Merchandise Inventory 54,000 0 000 22.000 13.000 Prepaid Expenses $ 193.000 5 102.000 Total Current Assets Total Assets $ 263.000 5 328 000 Total Current Liabilities 101.000 95.000 Total Latition 101,000 132.000 Common Stock Si par (11.000 shares) 11.000 $2 par (16,000 shares) 32,000 Total Stockholders' Equity 102.000 100,000 Market Price per Share of Common Stock 71 20 9 12 Dividends Pald por Common Share 120 110 Selected balance sheet data at the beginning of the current year Digital Plus Every Network Balance sheet Print Done Selected income statement data for the current year Digital Plus Every Network Net Sales Revenue (il on credit) 5 416,100 $ 493,545 Cost of Goods Sold 210.000 255,000 Interest Expense 0 19.000 Net Income 56.000 66.000 Requirement 1d. Compute the debt ratio for both companies for the current you Begin by selecting the formula to compute the debt ratio, Debt ratio Now.compute the debt ratio for both companies. (Round your answers to the one tenth of a percent, XX%) Digital Plus Every Network Debit ratio Requirement te. Compute the earnings per share of common stock for both companies for the current year, Begin by selecting the formula to compute the earnings per share of common stock Earnings per share of common stock Now.compute the earnings per share of common stock for both companies (Round your answers to the nearest cent) Digital Plus Every Network Esmings per share of common stock Requirement 1. Compute the price/earnings ratio for both companies for the current year Begin by selecting the formula to compute the price/earnings rutie Price angs ratio Now.compute the price camins ratio for both companies. Round interim and final onswers to two decimal pocos XXX Digital Plus Every Network Price camins ratio Requirement 19. Compute the dividend payout for both companies for the current year Begin by selecting the formula to compute the dividend payout. Dividend payout Now, compute the dividend payout for both companies (Round interim answers to two decimal place, XXX, and your final answers to the nearest whole percent, X Digital Plus Every Network Dividend payout Requirement 2. Decide which company's stock better fits your investments strategy Vand common stock seems to fit the investment strategy better. Its pricelearnings ratio is On the majority of the ratios