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Assume that you are purchasing an investment and have decided to Your strategy is to invest in companies that have invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Zone, Inc. and have assembled low price/earnings ratios but appear to be in good shape the following data. financially. Assume that you have analyzed all other factors an that your decision depends on the results of ratio analysis. (Click to view the income statement data.) (Click to view the balance theet and market price data.) Read the requirements. 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.) Requirements 1. Compute the following ratios for both companies for the current year: a. Acid-test ratio b. Inventory turnover c. Days' sales in receivables d. Debt ratio e. Earnings per share of common stock f. Price/earnings ratio g. Dividend payout 2. Decide which company's stock better fits your investment strategy. Data table Selected income statement data for the current year: Data table Selected balance sheet and market price data at the end of the current vear: Data table Data table Selected balance sheet data at the beginning of the current year: Data table