Data table Selected income statement data for the current year: Selected balance sheet and market price data at the end of the current year: Selected balance sheet data at the beginning of the current year: 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 Corp. and Very Zone, Inc. and have assembled the following data. Your strategy shape financia the results of 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 ra Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, X.XX.) Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory turnover = Now, compute the inventory tumover for both companies. (Round your answers to two decimal places, X.XX.) Assume that you are purchasing an investment and have decided to invest in a company in the digital phone Requirement 1c. Compute the days' sales in receivables for both companies for the current year. Begin by selecting the formula to compute the days' sales in receivable. Days' sales in recelvables = Now, compute the days' sales in recelvables for both companies. (Round interim calculations to two decimal places Requirement 1d. Compute the debt ratio for both companies for the current year. Begin by selecting the formula to compute the debt ratio. Requirement 1e. 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.) Requirement 1f. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the price/earnings ratio. Pricelearnings ratio = Now, compute the price/earnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Requirement 1g. 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 places, X.XXX, and your final Requirement 2. Decide which company's stock better fits your investments strategy. common stock seems to fit the investment strategy better. Its price/earnings ratio is and On the majority of the ratios, Requirement 2. Decide which company's stock better fits your investments strategy. common stock seems to fit the investment strategy better. Its price/earnings ratio is and On the majority of Digital's Very Zone's (1) Time Remaining: 02:53:47 higher than that of Digital, rrcent, X%.) higher than that of Very Zone, lower than that of Digital, lower than that of Very Zone, stock better fits your investments strategy. the investment strategy better. Its price/earnings ratio is and . On the majority the ratios, Digital appears in better shape financially than Very Zone Requirement 2. Decide which compe Very Zone appears in better shape financially than Digital common stock seems and On the majority of the ratios, Requirems Digital looks better than Very Zone. your investments strategy. Very Zone looks better than Digital. strategy better. Its price/earnings ratio is On the majority of the ratios, 365 Accounts receivable turnover ratio Annual dividend per share Earnings per share (Cash + Cash equivalents) Total current liabilities (Cash + Short-term investments + Accounts receivable, net) Total current liabilities Cost of goods sold + Average merchandise inventory Market price per share of common stock + Earnings per share (Net income - Preferred dividends) + Weighted average number of common share outstanding Total current assets + Total current liabilities Total liabilities + Total asset
