Log In | LoudCloud Systems X Do Homework - ACC-260 Benchr X * Course Hero X C A mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719743&questionld=1&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework ACC-260-0500 Cheyenne Mason & | 11/05/216:20 PM Homework: ACC-260 Benchmark - Topic 7 Assign... Question 5, PC-28A (sim... HW Score: 30%, 30 of 100 points Part 1 of 15 O Points: 0 of 30 Save Assume that you are purchasing an investment and have decided to invest in a company in the digital phone Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape business. You have narrowed the choice to Digitized Corp. and Every Zone, Inc. and have assembled the financially. Assume that you have analyzed all other factors and that your decision depends on the results of following data. ratio analysis. (Click to view the income statement data.) Read the requirements. (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 = Help me solve this Calculator Get more help - Clear all Check answer w 9 6:20 PM 11/5/2021Log In | LoudCloud Systems X Do Homework - ACC-260 Benchr X *Course Hero X C A mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719743&questionld=1&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework # & ACC-260-0500 Cheyenne Mason & | 11/05/216:20 PM X PC Data table t 1 of - X Data table Assur busin Selected income statement data for the current year: Selected balance sheet and market price data at the end of the current year: follow Digitized Every Zone Digitized Every Zone Net Sales Revenue (all on credit) $ 421,940 $ 496,035 Current Assets: Cost of Goods Sold 212,000 256,000 . . . . . Cash 28,000 $ 18,000 Interest Expense 18,000 Requ Short-term Investments 40,000 16,000 Net Income 62,000 70,000 Accounts Receivables, Net 37,000 46,000 Begin Merchandise Inventory 68,000 99,000 X Prepaid Expenses 21,000 17.000 Requirements Total Current Assets 194,000 $ 196,000 Total Assets $ 265,000 $ 329,000 1. Compute the following ratios for both companies for the current year: Total Current Liabilities 102,000 99,000 a. Acid-test ratio Total Liabilities 102,000 128,000 b. Inventory turnover c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock . Price/earnings ratio Print Done g. Dividend payout 2. Decide which company's stock better fits your investment strategy. Clear all Check answer W Y 9 6:21 PM 11/5/2021Log In | LoudCloud Systems X Do Homework - ACC-260 Benchr X *Course Hero X C A mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719743&questionld=1&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework # & ACC-260-0500 Cheyenne Mason & | 11/05/21 6:20 PM X PC Data table t 1 of - X Data table Assur busin Selected income statement data for the current year: follow Total Stockholders' Equity 163,000 201,000 Digitized Every Zone Market Price per Share of Common Stock 98.23 98.88 Net Sales Revenue (all on credit) $ 421,940 $ 496,035 Dividends Paid per Common Share 1.00 0.90 Cost of Goods Sold 212,000 256,000 . . . . . Selected balance sheet data at the beginning of the current year: Interest Expense 18,000 Requ Net Income 62,000 70,000 Digitized Every Zone Begin Balance sheet: Accounts Receivables, net 38,000 $ 49,000 X Requirements Merchandise Inventory 80,000 86,000 Total Assets 260,000 274,000 Common Stock 1. Compute the following ratios for both companies for the current year: $1 par (12,000 shares) 12,000 a. Acid-test ratio b. Inventory turnover $2 par (17,000 shares) 34,000 c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock . Price/earnings ratio Print Done g. Dividend payout 2. Decide which company's stock better fits your investment strategy. Clear all Check answer W Y 9 6:21 PM 11/5/2021