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.

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.

X - di Data Table Selected income statement data for the current year: Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Better Digital Zone Network 423,035 $ 496,035 210,000 261,000 0 17,000 62,000 74,000 Net Income Print Done