est in a company in the digital phone business. and have assembled the following data. Your strategy is to invest in companies that have low Assume that you have analyzed all other factors and Read the requirements. ed 0 Data Table Selected income statement data for the current year. wers Net Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Digitized Very Network 420,115 $ 498,955 210,000 260,000 17,000 62,000 70,000 fort Print Print Done Done ir ans y Network then continue to the next question. * Data Table pric tha Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash Short-term Investments Accounts Receivables, Net Merchandise Inventory 23,000 $ 40,000 40,000 64,000 19,000 17,000 19,000 45,000 102,000 16,000 Prepaid Expenses 186,000 $ 199,000 Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (13,000 shares) $1 par (15,000 shares) 265,000 $ 101,000 101,000 327,000 96,000 133,000 13,000 15,000 Print Done Data Table Pric tha 13,000 Common Stock: $1 par (13,000 shares) $1 par (15,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 164,000 76.32 0.80 15,000 194,000 112.08 0.50 Selected balance sheet data at the beginning of the current year: Digitized Very Network Balance sheet: Accounts Receivables, net Merchandise Inventory Total Assets Common Stock: $1 par (13,000 shares) $1 par (15,000 shares) 41,000 $ 83,000 257,000 54,000 86,000 273,000 13,000 15,000 Print Done Your strat Assume to 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 Digitized Corp. and Very 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.) Read the Requirement 1a. Compute the acid-test ratio for both companies for the current yeu Begin by selecting the formula to compute the acid-test ratio. Acid-test ratio Now, compute the ac - 365 / Accounts receivable turnover ratio Annual dividend per share / Earnings per share Acid-test ratio (Cash + Cash equivalents) / Total current liabilities (Cash + Short-term investments Accounts receivable, net) / Total current liabilities Requirement 1b. Co Cost of goods sold / Average merchandise inventory Begin by selecting the Market price per share of common stock /Earings per share (Net income . Preferred dividends) /Weighted average number of common share outstanding Inventory turnover Total current assets / Total current liabilities Now, compute the ins Total liabilities / Total asset Digitized Very Network Inventory turnover Choose from any list or enter any number in the input fields and then continue to the next question. Your strategy is to invest in Assume that you have analy 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 Digitized Corp. and Very Network, Inc. and have assembled the following data (Click to view the income statement data.) PE (Click to view the balance sheet and market price data.) Read the requirements. 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.) Digitized Very 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. Inventory turnover - Now, compute the inventory turnover for both Smpanies. (Round your answers to two decimal places, XXX.) Digitized Very Network Inventory turnover Choose from any list or enter any number in the input fields and then continue to the next question. 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 Digitized Corp. and Very Network, Inc. and have assembled the following data. (Click to view the income statement data.) Your strategy is to i Assume that you ha Read the requireme ER (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 your final answers to the Digitized Very 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 companijos. (Round your answers to the one tenth of a percent. X.X%) Very Network Debt ratio Digitized 1% | Choose from any list or enter any number in the input fields and then continue to the next question Your strate Assume the 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 Digitized Corp. and Very Network, Inc. and have assembled the following data. EF (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Read the re 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.) Digitized Very Network Earnings per share of common stock Requirement 11. Compute the price/earnings ratio for both companies for the current year. Begin by selecting the formula to compute the pricelearnings ratio. Pricelearnings ratio = Now, compute the pricelearnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Digitized Very Network Choose from any list or enter any number in the input fields and then continue to the next question. Question Your strategy is to invest in companies that have low prowarnings ratio butopear to be in good shape finan Assume that you have analyzed all other factors and that your decision depends on the soft analysis Assume that you are purchasing an investment and have decided to invest in a company in the digital phone bushes wou have arrowed the choice to Digitired Corp and very Network, Inc. and have assembled the following data. (Click to view the income statement data) om (Click to view the balance sheet and market price data) Read the room s Now, compute the price learnings ratio for both companies (Round interim and final answers to two decimal places, XXX) Digrired Very Network Pric i ngs ratio Requirement 19. 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 ou d w ers to two decal places XXX, and your finanswers to the nearest who percent Digitized Very Network Dividend payout Requirement 2. Decide which company's stock beter is your investments wrogy common sock s to it the strant wagy better. Its prieniaming ratio is . One morty of here Digitized Very Network's enterary number in the input fields and then continue to the next question the digital phone business. led the following data. Your strategy is to invest in companies that have low prica/earnings ratios but appear to be in good shape financially Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Read the requirements ers to two decimal places, X.XX decimal places Ost whole percent, X%) higher than that of Digitized, higher than that of Very Network, lower than that of Digitized, lower than that of Very Network, On the majority of the ratios, learnings ratio is de and to the next question. Question Help usiness. Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Read the requirements. laces, X.XX.) X, and your final answers to the nearest whole percent, X%.) . On the majority of the ratios, Digitized appears in better shape financially than Very Network Very Network appears in better shape financially than Digitized Assume that you are purchasing an investment and have decided to invest in a company in the digital You have narrowed the choice to Digitized Corp. and Very Network, 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 price/earnings ratio for both companies. (Round interim and final answers to two decir Digitized Very Network Pricelearnings ratio 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.X Digitized Very Network Dividend payout 0 % 0 % 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 input fields and then continue to the next question. Digitized looks better than Very Network. Very Network looks better than Digitized. 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. terin Ver nvest Print [Done] tegy