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Data table Selected income statement data for the current year: Digital Very Network Net Sales Revenue (all on credit) $ 418,290 $ 496,035 Cost of
Data table Selected income statement data for the current year: Digital Very Network Net Sales Revenue (all on credit) $ 418,290 $ 496,035 Cost of Goods Sold 212,000 259,000 Interest Expense Net Income 0 14,000 62,000 66,000 Print Done Data table Selected balance sheet and market price data at the end of the current year: Digital Very Network Current Assets: Cash $ 24,000 $ 17,000 Short-term Investments 43,000 17,000 Accounts Receivables, Net 38,000 43,000 Merchandise Inventory 67,000 97,000 Prepaid Expenses 19,000 18,000 Total Current Assets $ 191,000 $ 192,000 Total Assets S 265,000 $ 324,000 Total Current Liabilities 104,000 99,000 104,000 133,000 ore help Total Liabilities Common Stock: $1 par (12,000 shares) $1 par (17,000 shares) 12,000 17,000 Total Stockholders' Equity 161,000 191,000 Market Price per Share of Common Stock 77.55 93.12 Dividends Paid per Common Share 1.10 1.00 Print Done 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. Price/earnings ratio g. Dividend payout 2. Decide which company's stock better fits your investment strategy. Print Done
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