Homework: Assignment 4 - Chap 14 - ratio analysis Save Score: 0 of 1 pt 10 of 13/8 completely HW Score: 46.15%, 6 of 13 pts P14-38A (book/static) Question Help Assume that you are purchasing an einer and have decided to invest in a company in the smartphone business. Your strategy is to invest in companies that have low price rings ratios but appear to be in good shape Francialy You have arrowed the choice is Best Dialectronics or Zone Network Electronics and have assented the following Arumerul you have analyzed other factors and that your decision depends on the rest of this Click to view the income mento) Read the more enter any percentage as decimals in this format. XXX Round your answers to two decimo Click to view the balance sheet and market price data) Best Digital Zone Nutwork Modesta Enter any number in the ed elds and then click Check Answer 7 Parta Clour Al remaining Check Answer ok Electronics and have assembled the following Assume that you have analyzed all other factors and Read the requirement. (Enter any percentages as dec places.) * Requirement X Compute the following ratios for both companies for the current year and decide which company's stock better fits your investment strategy. Assume all sales are on credit a. Acid-test ratio b. Inventory turnover c. Days' sales in average receivables d. Debt ratio e. Gross profit percentage f. Earnings per share of common stock g. Pricelearnings ratio Print Done nswer Clear All 000 F& % & 4 5 6 7 8 9 cronics and have assembled the following Read the requirement. (Enter any percentages as de places.) X Income statement Selected income statement data for the current year follows: $ Net sales (all on credit) Cost of goods sold Interest expense $ Best Digital Zone Network 467,200 $ 569,400 203,000 $ 242,000 - $ 19,500 72,800 $ 95,400 Net income $ Print Done nswer Clear All 008 aa F5 F6 FB FO % A & 4 5 6. 7 Balance sheet and market price data bw pric nd that decima Selected balance sheet data at the beginning of the current year follows: Current receivables, net Best Digital Zone Network $ 45,060 $ 53,780 $ 73,000 $ 73,000 $ 262,000 $ 274,000 Inventories Total assets Common stock: $1 par, (13,000 shares) $ 13,000 $1 par, (18,000 shares) $ 18,000 Selected balance sheet and market price data at the end of the current year follows: Best Digital Zone Network Current assets: $ Cash Short-term investments Current receivables, net $ $ 27.000 $ 38,520 $ 37,500 $ 72,000 $ 4.980 $ 18,000 15,400 44,500 103.000 6,100 Inventorios $ Prepaid expenses Total current assets Total assets Total current liabilities $ $ 180,000 $ 300,000 $ 102.000 $ 187,000 325,000 95,000 $ nswer Print Done Done F4 F7 DII FB FO lance sheet and market price data $1 par, (13,000 shares) $ 13,000 $1 par, (18,000 shares) $ 18,000 Selected balance sheet and market price data at the end of the current year follows: Best Digital Zone Network Current assets: Cash 27,000 $ Short-term investments $ 38,520 $ 37,500 $ 72,000 $ 4,980 $ Current receivables, net Inventories Prepaid expenses Total current assets Total assets 18,000 15,400 44,500 103,000 6,100 $ $ $ 180,000 $ $ Total current liabilities Total liabilities 187,000 325,000 95,000 143,000 300,000 $ 102,000 $ 102,000 $ $ Is $ Common stock: $1 par, (13,000 shares) $1 par, (18,000 shares) Total stockholders' equity Market price per share of common stock 13,000 $ S 198,000 $ 98.00 S 18,000 182.000 100.70 $ Print Done