Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

does that help???? accounting question assume that you are purchasing an investment and have decided to invest in a company in the digital phone busi

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribeddoes that help????
image text in transcribed
image text in transcribed
image text in transcribed
accounting question
assume that you are purchasing an investment and have decided to invest in a company in the digital phone busi You have narrowed the choice to Better Digital Corp. and Very Zone, 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, X.XX.) Better Digital Very Zone Acid-test ratio Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formulalto compute the inventory tumover. Inventory turnover Now.compute the inventory tumover for both companies. (Round your answers to two decimal places, XXX) Better Digital Very Zone Invertory tumover Choose from any list or enter any number in the input fields and then continu Assume that you are purchasing an investment and have decided to invest in a company in the digital phone busine You have narrowed the choice to Better Digital Corp. and Very Zone, Inc. and have assembled the following data. Click to view the income statement data.) 5 Click to view the balance sheet and market price data.) 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 receivables Now, compute the days' sales in receivables for both companies. (Round interim calculations to two decimal places and Better Digital Very Zone 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 Very Zone Debt ratio Rennviroment to rate the earninnener chorenremmonenek for the meaning for the current wear Choose from any list or enter any number in the input fields and then continue to the next Click to view the balance sheet and market price data.) 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 cen Better Digital Very Zone Earrings per share of common stock Requirement 11. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the price earrings ratio. Pricelearings ratio Now.compute the pricelearnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX Better Digital Very Zone Pelcelearnings ratio Reouirement to compute the dividend Davut for both companies for the current var Choose from any list or enter any number in the input fields and then continuo to the next question. o sume that you are purchasing an investment and have decided to invest in a company in the digital ph have narrowed the choice to Better Digital Corp. and Very Zone, Inc. and have assembled the follow Click to view the income statement data.) Click to view the balance sheet and market price data.) Now, compute the pricelearnings ratio for both companies. (Round interim and final answers to two decimal Better Digital Very Zone Pricelearnings ratio Requirement 1g. Compute the dividend payout for both companies for the current year. Begin ty selecting the formdia to compute the dividend payout. Didend payout Now.compute the dividend payout for both companies. (Round interim answers to two decimal places, X.XX, an Better Digital Very Zobe Dividend paya % % Requirement 2. Decide which company's stock better fits your investments strategy. Con stock seems to the investment strategy better. Its pricelearnings ratio is Choose from any sortert an umber in the input biolds and then continue to the next question E One 9 of 22 (20 complete) company in the digital phone business. mave assembled the following data. Your strategy is to invest in companies that ha Assume that you have analyzed all other facto Read the requirements. i 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 $ 417,925 $ 209,000 0 Very Zone 496,035 260,000 14,000 66.000 ory 52,000 Print med Done better. Its pricelearnings ratio is and d then continue to the next question 9 of 22 (20 complete) Data Table Selected balance sheet and market price data at the end of the current year: Better Digital Very Zone Current Assets: Cash 23,000 $ 20,000 Short-term investments 42,000 17,000 Accounts Receivables. Net 38,000 45,000 Merchandise Inventory 64.000 98,000 Prepaid Expenses 21.000 13,000 Total Current Assets S 188,000 $ 193,000 Total Assets S 260.000 S 329,000 Total Current Liabilities 105,000 99.000 Total Liabilities 105.000 134.000 rwel Common Stock 51 par (11.000 shares) 11.000 52 pa (14 000 shtes 28,000 Print Done 9 of 22 (20 complete) Data Table Common Stock: $1 par (11,000 shares) 11,000 $2 par (14,000 shares) 28,000 Total Stockholders' Equity 155,000 195,000 Market Price per Share of Common Stock 66.22 122.46 Dividends Paid per Common Share 0.80 0.40 Selected balance sheet data at the beginning of the current year: Better Digital Very Zone Balance sheet Accounts Receivables, net S 41.000 $ 54,000 Merchandise Inventory 81.000 89.000 tal Assets 257.000 275,000 we Common Stock ateg $1 par (11.000 shares) 52 par (14000 shares) 11.000 20.000 Sandi Print Dono

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing & Assurance Services A Systematic Approach

Authors: William F Messier Jr, Steven M Glover, Douglas F Prawitt

11th Edition

1260687635, 1259969444, 9781259969447, 978-1260687637

More Books

Students also viewed these Accounting questions