PF17-28a

1a. Compute the acid-test ratio.

begin by selecting the formula to compute the acid-test ratio

data) X th companies for the i Data Table test ratio. ants + Accounts receivad Selected income statement data for the current year: mies. (Round your answers etter Digital Zone Nel Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Better Digital Zone Network $ 423.035 $ 496,035 210,000 261,000 0 17,000 62,000 74,000 Print Done i Data Table price/earr that your wo Selected balance sheet and market price data at the end of the current year: Better Digital Zone Network for Current Assets: Cash 24,000 $ 22,000 is red 18,000 Sur and 42,000 38,000 64,000 17,000 185,000 $ 45,000 99,000 14,000 Zon $ 198,000 Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (11,000 shares) $1 par (15,000 shares) $ 261,000 $ 104,000 104,000 323,000 98,000 134,000 11.000 15,000 ck Answer Print Done x PF17-28A (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 = (Cash + Short-term investments + Accounts receivable, net) - Total current liabilities Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, X.XX.) Better Digital Zone Network Acid-test ratio