Data table Selected balance sheet and market price data at the end of the current year Better Digital Every Network Current Assets Cash $ 25,000 $ 22.000 Short-term Investments 38,000 17,000 Accounts Receivables, Net 38,000 44,000 Merchandise Inventory 64,000 97,000 Prepaid Expenses 19,000 18,000 $ 184,000 $ 198,000 Total Current Assets Total Assets 264,000 $ 324,000 Total Current Liabilities 100,000 96,000 Total Liabilities 100,000 130,000 Common Stock $1 par (13.000 shares) 13,000 $1 par (15.000 shares) 15,000 Total Stockholders' Equity 164,000 194,000 Market Price per Share of Common Stock 71.55 121.42 Dividends Paid per Common Share 0.50 0.30 Selected balance sheet data at the beginning of the current year Better Digital Every Network Balance sheet Accounts Receivables, net $ 40,000 $ 50.000 Merchandise Inventory 86,000 90.000 Total Assets 258,000 270.000 Data table - Selected income statement data for the current year Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Better Digital Every Network $ 416,100 $ 493,845 207,000 256,000 0 17,000 $ 62,000 70,000 tes Print Done 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 Better Digital 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 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) Better Digital Every Network 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 Arwentory turnover Now.compute the twentory turnover for both companies (Round your answers to two decimal places, XXX) Better Digital Every Network Inventory turnover Requirement 1, Compute the days tales in receivables for both companies for the current year, Begin by selecting the formula to compute the days' sales in receivable Days' sale in recevables Now.compute the days sales in receivables for both companies (Round Interim calculations to two decimal places and your final answers to the nearest whole day) Better Digital Every Network Days sales in receivables Requirement 1d. Compute the debt ratio for both companies for the current year 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%) Better Digital Every Network Debt ratio % Requirement te. Compute the earings 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.) Better Digital Every Network Earnings per share of common stock Requirement 1f. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the price/earings ratio Price/earnings ratio Now.compute the pricelearnings ratio for both companies (Round interim and final answers to two decimal places, XXX) Better Digital Every Network Pricelearnings ratio . Selected balance sheet data at the beginning of the current year Better Digital Every Network Balance sheet: S Accounts Receivables, net Merchandise Inventory Total Assets 40,000 $ 86.000 50,000 90,000 270,000 258,000 Common Stock: $1 par (13,000 shares) $1 par (15,000 shares) 13,000 15,000
