Perform financial analysis and make an investment decision Assume that you are purchasing an investment and have decided to invest in a company in the smartphone business. You have narrowed the choice to Digital Plus Electronics or Speed Network Electronics and have assembled the following data. Selected income statement data for the current year follow: Digital Plus Speed Network Net sales (all on credit) $401,500 $554,800 Cost of goods sold $209,000 $231,000 Interest expense $ 16,500 Net income $ 49,000 $ 63,000 Selected balance sheet data at the beginning of the current year follow: Digital Plus Speed Network Current receivables, net $ 34,300 $ 53,480 Inventories $ 86,000 $77,000 Total assets $258,000 $276,000 Common stock: $1 par (10,000 shares) $ 10,000 $1 par (14,000 shares) $ 14,000 Selected balance sheet and market-price data at the end of the current year follow: Digital Plus Speed Network Current assets: Cash $ 30,500 $ 22,000 Short-term investments 52,220 21,200 Current receivables, net 35,000 40,000 Inventories 66,000 98,000 Prepaid expenses 2280 6,800 Total current assets $186,000 $188,000 Total assets $436,000 $434,375 Total current liabilities $109,000 $104,000 Total liabilities $109,000 $139,000 Common stock: Double-click to hide white space Digital Plus Speed Network $1 par (10,000 shares) $ 10,000 $1 par (14,000 shares) $ 14,000 Total stockholders' equity $327,000 $295,375 $81.90 Market price per share of common stock $ 73.50 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. Requirement: 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. Return on sales g. Earnings per share of common stock h. Price/earnings ratio