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please complete all 13 parts. Your strategy is to invest in companies that have low price learnings ratios but appear to be in good shape
please complete all 13 parts.
Your strategy is to invest in companies that have low price learnings ratios but appear to be in good shape financialy. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis 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 Every Zone, 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 the requirements Requirement 1a. Compute the acid-test ratio oth 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 1 Requirements Better Digital Every Zone Acid-best ratio a. 1. Compute the following ratios for both companies for the current year: Acid-test ratio b. Inventory tumover c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock f. Pricelearnings ratio 9 Dividend payout 2. Decide which company's stock better fits your investment strategy Enter any number in the edit fields and then click Check Answer Print Done 13 parts remaining A) Data Table ur strategy is to invest in companies that have low pricelearnings ratios but appear to be in good bpe financially. Assume that you have analyzed all other factors and that your decision depends the results of ratio analysis ad the requirements i Data Table Selected balance sheet and market price data at the end of the current year Better Digital Every Zone Current Assets Cash $ 25,000 $ 21,000 Short-term Investments 40.000 19.000 Accounts Receivables Not 38,000 48.000 Merchandise Inventory 69,000 102.000 Prepaid Expenses 17,000 15,000 $ Total Current Assets 189.000 $ 205,000 Total Assets $ 265.000 $ 326,000 Total Current Liabilities 100,000 98,000 Total Liabilities 100,000 133.000 Common Stock $1 par (11,000 shares) 11,000 $1 par (16.000 shares) 16,000 Total Stockholders' Equity 165,000 193.000 Selected income statement data for the current year Better Digital Net Sales Revenue (all on credit) 421,940 $ Cost of Goods Sold 210,000 Interest Expense 0 Net Income $1,000 $ Every Zone 494940 258.000 19,000 70,000 Print Done Print Check Answer Done g Question Help 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 Every Zone, Inc. and have assembled the following data Click to view the income statement data.) (Click to view the balance sheet and market price data) Your weg is to invest in companies that have low price learningstation but aconor to be in good shape financially. Assume that you have analyzed other factors and that your decision depends on the results of ratio analysis Read the requirements 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, not) / Total current liabilities Now.compute the acid-test ratio for both companies (Round your answers to two decimal places, Xxx) Better Digital Every Zone Acid-test ratio Enter any number in the edit fields and then click Check Answer Check Answer Clear All 13 parts remaining Your strategy is to invest in companies that have low price learnings ratios but appear to be in good shape financialy. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis 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 Every Zone, 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 the requirements Requirement 1a. Compute the acid-test ratio oth 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 1 Requirements Better Digital Every Zone Acid-best ratio a. 1. Compute the following ratios for both companies for the current year: Acid-test ratio b. Inventory tumover c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock f. Pricelearnings ratio 9 Dividend payout 2. Decide which company's stock better fits your investment strategy Enter any number in the edit fields and then click Check Answer Print Done 13 parts remaining A) Data Table ur strategy is to invest in companies that have low pricelearnings ratios but appear to be in good bpe financially. Assume that you have analyzed all other factors and that your decision depends the results of ratio analysis ad the requirements i Data Table Selected balance sheet and market price data at the end of the current year Better Digital Every Zone Current Assets Cash $ 25,000 $ 21,000 Short-term Investments 40.000 19.000 Accounts Receivables Not 38,000 48.000 Merchandise Inventory 69,000 102.000 Prepaid Expenses 17,000 15,000 $ Total Current Assets 189.000 $ 205,000 Total Assets $ 265.000 $ 326,000 Total Current Liabilities 100,000 98,000 Total Liabilities 100,000 133.000 Common Stock $1 par (11,000 shares) 11,000 $1 par (16.000 shares) 16,000 Total Stockholders' Equity 165,000 193.000 Selected income statement data for the current year Better Digital Net Sales Revenue (all on credit) 421,940 $ Cost of Goods Sold 210,000 Interest Expense 0 Net Income $1,000 $ Every Zone 494940 258.000 19,000 70,000 Print Done Print Check Answer Done g Question Help 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 Every Zone, Inc. and have assembled the following data Click to view the income statement data.) (Click to view the balance sheet and market price data) Your weg is to invest in companies that have low price learningstation but aconor to be in good shape financially. Assume that you have analyzed other factors and that your decision depends on the results of ratio analysis Read the requirements 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, not) / Total current liabilities Now.compute the acid-test ratio for both companies (Round your answers to two decimal places, Xxx) Better Digital Every Zone Acid-test ratio Enter any number in the edit fields and then click Check Answer Check Answer Clear All 13 parts remaining Step by Step Solution
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