PF17-28a

1b. Compute the inventory turnover for both companies for the current year.

Begin by selecting the formula to compute the inventory turnover.

Your Assu % 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.) Read 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 1.00 0.87 Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory tumover X e Data Table ivali Selected income statement data for the current year: swers e Net Net Sales Revenue (all on credit) 0.87 Cost of Goods Sold Better Digital Zone Network $ 423,035 $ 496,035 210,000 261,000 0 17,000 62,000 74,000 es for Interest Expense Net Income Print Done i Data Table pric that Selected balance sheet and market price data at the end of the current year: Better Digital Zone Network Current Assets: Cash Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 24,000 $ 42,000 38,000 64,000 17,000 22,000 18,000 45,000 99,000 14,000 $ 185,000 $ 198,000 Total Current Assets Total Assets $ 261,000 $ 104,000 104,000 323,000 98,000 Total Current Liabilities Total Liabilities 134,000 Common Stock: 11,000 $1 par (11,000 shares) $1 par (15,000 shares) 15,000 Print Done