Net sales (all on credit) Cost of goods sold... Interest expense Net income $ Better Digital $ 408,800 $ 203,000 $ - $ $ 52,800 $ Zone Plus 511,000 255,000 18,500 64,400 $ $ Better Digital Zone Plus Current receivables, net 32,820 $ 40,700 Inventories 75,000 $ 82,500 Total assets $ 262,000 $ 274,000 Common stock: $1 par, (11,000 shares) .. $ 11,000 Common stock: $1 par, (14,000 shares).. $ 14,000 Better Digital Zone Plus $ 20,500 22,200 $ A $ 44,000 $ Current assets: Cash Short-term investments Current receivables, net Inventories Prepaid expenses Total current assets Total assets... Total current liabilities Total liabilities Common stock: $1 par, (11,000 shares) 105,000 4,300 $ 28,000 $ 43,620 $ 35,500 $ 65,000 $ 2,880 $ 175,000 $ 325,000 $ 104,000 $ 104,000 $ 11,000 $ $ $ 196,000 272,000 102,000 136,000 $ $ $ $ $ Common stock: $1 par, (14,000 shares). Total stockholders' equity.... Market price per share of common stock 14,000 136,000 $ 221,000 $ $ 79.20 $ 85.10 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. Price/earnings ratio Assume that you are purchasing an investment and have decided to invest in a company in Selected balance sheet and market price data at the end of the current year follow: the smartphone business. You have narrowed the choice to Better Digital Electronics or (Click to view the market price data.) Zone Plus Electronics and have assembled the following data. Selected income statement data for the current year follows: Your strategy is to invest in companies that have low price/earnings ratios but appear to be (Click to view the income statement data.) in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Selected balance sheet data at the beginning of the current year follow: E (Click to view the balance sheet data.) Read the requirement. (Enter any percentages as decimals this format, X.XX. Round your answers to two decimal places.) CE Better Digital Zone Plus a. Acid-test ratio