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Question Using ratios to decide between two share investments Assume that you are purchasing an investment and have decided to invest in a company

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Question Using ratios to decide between two share investments 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 Best Digital and Very Zone Ltd and have assembled the following data. Net sales (all on credit) Cost of sales Interest expense Profit Best Digital Very Zone $417 925 $493 845 207 000 259 000 14 000 56 000 72 000 Selected balance sheet and market price data at the end of the current year are: Best Digital Very Zone Current assets: Cash $ 23 000 $ 21000 Short-term investments 38 000 15 000 Accounts receivables, net 37 000 47 000 Inventories 65 000 97 000

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