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please complete all 14 parts. thank you Question Help Assume that you are purchasing an investment and have decided to invest in a company in
please complete all 14 parts. thank you
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 Wrategy is to invest in companies that have low price learningstatios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the rest of ratio analysis Read the requirements Requirement ta. 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 365 / Accounts receivable tumover ratio Annual dividend per share/Earnings per share (Cash + Cash equivalents) / Total current abilities (Cash - Short-term investments Accounts receivable, net)/Total current abilities Cost of goods sold / Average merchandise inventory Market price per share of common stock/Earnings per share (Net income. Preferred dividends)/Weighted average number of common share outstanding Total current assets/Total currenties Total liabilities/Total asset Choose from any drop-down list and then click Check Answer Check Answer Clear All 14 parts remaining 9 MacBook Air 9 8 7 6 5 4 3 TU ZUR (511dl 10) 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 strategy is to invest in companies that have low price learnings ratos 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. Read the requirements 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 Data Table 1. Compute the following ratios for both companies for the current year Acid-test ratio b. Inventory turnover c. Days' sales in receivables d. Det ratio e. Earnings per share of common stock f. Pricelearnings ratio o Dividend payout 2. Decide which company's stock better fits your investment strategy Selected income statement data for the current year: Every Zone Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Better Digital $ 421,940 $ 210,000 0 51.000 494,940 258.000 19,000 Print Dono 70,000 2 Print Done Check Answer Clear Al 14 remaining 9 MacBook Air 0 8 but appear to be in goo your decision depends Assume that you are purchasing an investment and have decided to digital phone business. You have narrowed the choice to Better Digital Data Table and have assembled the following data. (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Selected balance sheet and market price data at the end of the current year Better Digital Every Zone Requirement 1a. Compute the acid-test ratio for both companies for Begin by selecting the formula to compute the acid-test ratio, Current Assets Cash $ 21.000 Acid-test ratio 25,000 $ 40,000 38,000 19,000 48,000 Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 69,000 17,000 102,000 15,000 $ 189,000 $ 205,000 $ 326,000 265.000 $ 100,000 100,000 98,000 133,000 Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock $1 par (11,000 shares) $1 par (16,000 shares) Total Stockholders' Equity 11.000 16,000 193.000 165.000 Choose from any drop-down list and then click Check Answer Print Done ick Answer 14 remaining Sur 9 MacBook Ain 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 Wrategy is to invest in companies that have low price learningstatios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the rest of ratio analysis Read the requirements Requirement ta. 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 365 / Accounts receivable tumover ratio Annual dividend per share/Earnings per share (Cash + Cash equivalents) / Total current abilities (Cash - Short-term investments Accounts receivable, net)/Total current abilities Cost of goods sold / Average merchandise inventory Market price per share of common stock/Earnings per share (Net income. Preferred dividends)/Weighted average number of common share outstanding Total current assets/Total currenties Total liabilities/Total asset Choose from any drop-down list and then click Check Answer Check Answer Clear All 14 parts remaining 9 MacBook Air 9 8 7 6 5 4 3 TU ZUR (511dl 10) 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 strategy is to invest in companies that have low price learnings ratos 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. Read the requirements 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 Data Table 1. Compute the following ratios for both companies for the current year Acid-test ratio b. Inventory turnover c. Days' sales in receivables d. Det ratio e. Earnings per share of common stock f. Pricelearnings ratio o Dividend payout 2. Decide which company's stock better fits your investment strategy Selected income statement data for the current year: Every Zone Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Better Digital $ 421,940 $ 210,000 0 51.000 494,940 258.000 19,000 Print Dono 70,000 2 Print Done Check Answer Clear Al 14 remaining 9 MacBook Air 0 8 but appear to be in goo your decision depends Assume that you are purchasing an investment and have decided to digital phone business. You have narrowed the choice to Better Digital Data Table and have assembled the following data. (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Selected balance sheet and market price data at the end of the current year Better Digital Every Zone Requirement 1a. Compute the acid-test ratio for both companies for Begin by selecting the formula to compute the acid-test ratio, Current Assets Cash $ 21.000 Acid-test ratio 25,000 $ 40,000 38,000 19,000 48,000 Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 69,000 17,000 102,000 15,000 $ 189,000 $ 205,000 $ 326,000 265.000 $ 100,000 100,000 98,000 133,000 Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock $1 par (11,000 shares) $1 par (16,000 shares) Total Stockholders' Equity 11.000 16,000 193.000 165.000 Choose from any drop-down list and then click Check Answer Print Done ick Answer 14 remaining Sur 9 MacBook Ain Step by Step Solution
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