- i 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 Answer. F17-28A (similar 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 Better Digital Corp. and Zone 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.) 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 Requirements 1. Compute the following ratios for both companies for Acid-test ratio b. Inventory turnover c. Days' sales in receivables d. Debt ratio o. Earnings per share of common stock f. Price/earings ratio 9. Dividend payout 2. Decide which company's stock better fits your investmen Print Done Choose from any drop-down list and then click Check Answer. Data Table Your strategy is to invest in companies that have low price/earings ratios but appea Assume that you have analyzed all other factors and that your decision depends on Read the requirements Data Table lected balance sheet and market price data at the end of the current year Better Digital Zone Network Current Assets Cash 23,000 $ 21,000 Short-term investments 41.000 19.000 Accounts Receivables, Net 37,000 43,000 Merchandise Inventory 65,000 99,000 23,000 14.000 Prepaid Expenses $ 189.000 $ Total Current Assets 196,000 Total Assets 3 200.000 5 325.000 Total Current Liabilities 100,000 97.000 Total Liabilities 100.000 130.000 Common Stock Si par (10,000 shares) 10,000 51 par (17.000 shares) 17.000 Tot Stockholders Equity 160.000 195.000 Market Price per Share of Corrmon Stock 114.00 93.12 Dividends Pais por Common Share 1.20 1.10 Selected income statement data for the current year: Net Salos Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Better Digital Zone Network 418.290 5 493,115 210,000 259.000 0 14.000 60.000 00.000 Print Done Jone Print Done Clear Al ng