Assume that you we purchasing an investment and have decided to invest in a comowy in the digital phone business you have narrowed the choice to Died Corp and Every Zone, Inc and have sembled the following Yours to invest in companies that have low gratis bolero bend you have any other factors and that your deciso depends on the rest of analys Header Requirements - X to the balance sheet and price data) Requirements Compute the acido for both companies for the current year Begin by selecting the form to compute the acid fostrato Atestato Data Table - X 1. Compute the wing ts for both companies for the end you Atestato b. inventory mover Dawiec Dette per share of common stock 1. Prenings Every Zone Pw Done 5 Digitalized 03035 210 000 200 000 19.000 Cost of Goods Sold Intereste Net income 0 57 000 Print Done Check Answer Question Help invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that all other factors and that your decision depends on the results of ratio analysis. nents - X i 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 Print Done 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 - X Data Table Selected income statement data for the current year: Digitalized Every Zone Net Sales Revenue (all on credit) $ 423,035 $ 493,845 Cost of Goods Sold 210,000 260.000 19,000 Interest Expense 0 Net Income 51,000 72.000 Print Done Choose rom any drop-COWITIISu and men CIICK Check Answer. - X - Data Table pricelearnings ratios b cision depends on the ed to invest in nd have asser Selected balance sheet and market price data at the end of the current year Digitalized Every Zone es for the curre Current Assets wing ratios for both cor $ Cash hover h receivables Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Assets Total Current Liabilities 24,000 $ 40,000 40,000 66,000 23,000 193,000 $ 17,000 14,000 48,000 97,000 12,000 188,000 share of common stoc s ratio out hpany's stock better fits $ $ Eve 266,000 $ 105,000 105,000 323,000 96,000 128,000 Print lized 423,035 $ 210,000 0 Total Liabilities Common Stock 12,000 17,000 51,000 $1 par (12,000 shares) $1 par (17,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock 195 000 161.000 76 50 114.48 SWET Print Done Data Table decided to invest in Inc. and have asser - pricelearnings ratic cision depends on ti Total Current Liabilities ta.) 96,000 105 000 105,000 . Total Liabilities 128,000 -mpanies for the curre 12,000 ywing ratios for both atio Common Stock $1 par (12,000 shares) $1 par (17,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 17,000 195,000 161,000 76.50 nover h receivables 114.48 1.10 1.00 Selected balance sheet data at the beginning of the current year share of common st is ratio out pany's stock better ar Digitalized Every Zone Digitalized Eve I Pri 423,035 S $ 210,000 0 Balance sheet Accounts Receivables, net Merchandise Inventory Total Assets Common Stock: $1 par (12,000 shares) $1 par (17,000 shares) 41,000 $ 81,000 261,000 54,000 87,000 272,000 51,000 12,000 17,000 he ERANSwer Print Done