Question Help Selected balance sheet and market price data at the end of the current year follane (Click to view the market price data) Assume that you are purchasing an investment and have decided to invest in a company in the smartphone business. You have narrowed the choice to Best Digital Electronics or Every Network Electronics and have assembled the following data. Selected income statement data for the current year follows: Click to view the income statement data) Selected balance sheet data at the beginning of the current year follow BEE (Click to view the balance sheet data) Your strategy is to invest in companies that have low pricelearnings ratios but opear 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. Read the requirement. (Enter any percentages as decimals in this format, XXL Pound your answers to two decimal places Best Digital Every Network a. Acid-test ratio Enter any number in the edit fields and then click Check Answer 7 parts remaining Clear All Check Anger 14-44A (Similar to) Assume that you are purchasing an investment and have decided to invest in a company in the smartphone Selected balance sheet and market price data at the end of the curre business. You have narrowed the choice to Best Digital Electronics or Every Network Electronics and have Click to view the market price data) assembled the following data. Selected income statement data for the current year follows: ! (Click to view the income statement data) ogs i Balance sheet and market price data Selected balance sheet data at the beginning of the current year follow. (Click to view the balance sheet data.) fo Income statement Best Digital Every Network 35.000 $ 44 550 Current receivables, net Ever Inventories $ 91,500 $ 78,000 Total assets 258 000 $ 271.000 12.000 $ Net sales (all on credit) Cost of goods sold Common stock: $1 par, (12,000 shares). . $ Common stock: $1 par, (17,000 shares) .. S 17.000 Best Digital Every Network 438,000 $ 529 250 221.000 $ 243.000 18.000 64.800 $ 85.000 Interest expense Net income $ Done Print Done ta HSC Balance sheet and market price data Eyo UH he vie Selected balance sheet and market price data at the end of the current year follow (Click to view the market price data) Your strategy is to invest in companies that have low pricelearnings ratios but appear financially. Assume that you have analyzed all other factors and that your decision de and Best Digital Every Network vie Current assets: Cash $ 0 Requirement Short-term investments 21,000 22,840 $ Current receivables, net $ 29.500 $ 46,920 $ 37,000 $ 71,000 $ 3,580 $ 41.000 Inventories $ att 102,000 5.160 $ Prepaid expenses Total current assets 188,000 $ 192.000 Total assets 267,500 $ 274.000 Compute the following ratios for both companies for the current year and decide which company's stock better fits your investment strategy. Assume all sales are on credit. a. Acid-test ratio b. Inventory turnover c. Days' sales in average receivables d. Debt ratio e. Gross profit percentage f. Earnings per share of common stock g. Price/earnings ratio Total current liabilities $ 107,000 $ 101.000 Total liabilities $ 107 000 $ 137 000 $ Common stock: $1 par, (12,000 shares) Cammon stock. $1na17 oon charac 12.000 17100 Print Done Print Done