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terrible long question ... please help! manengiral accounting Assume that you are purchasing an investment and have decided to invest in a company in the

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Assume that you are purchasing an investment and have decided to invest in a company in the Your strategy is to invest in companies that have low price/earnings ratios but appear to be in digital phone business. You have narrowed the choice to Better Digital Corp. and Every Zone, Inc. good shape financially. Assume that you have analyzed all other factors and that your decision and have assembled the following data. depends on the results of ratio analysis. Click to view the income statement data) Read the requirements 3 Click to view the balance sheet and market price data) 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, net)/Total current liabilities Now, compute the acistest ratio for both companies. (Round your answers to two decimal places, X.XX.) Better Digital Every Zone Acid-test ratio .87 Requirement 1b. Compute the inventory tumover for both companies for the current year. Choose from any list or enter any number in the input fields and then continue to the next question Requirement 1b. Compute the inventory turnover for both companies for the current year. Begin by selecting the formula to compute the inventory turnover. Inventory turnover Now, compute the inventory turnover for both companies. (Round your answers to two decimal places, X.XX.) Better Digital Every Zone Inventory turnover Requirement i Compute the days' sales in receivables for both companies for the current year Begin by selecting the formula to compute the days' sales in receivable. Days' sales in receivables - Now.compute the days' sales in receivables for both companies (Round interim calculations to two decimal places and your final answers to the nearest whole day.) Requirement 1d. Compute the debt ratio for both companies for the current year. Begin by selecting the formula to compute the debt ratio. Debt ratio Now, compute the debt ratio for both companies. (Round your answers to the one tenth of a percent, X.X%.) Better Digital Every Zone Debt ratio % % Requirement 1e. Compute the earnings per share of common stock for both companies for the current year. Begin by selecting the formula to compute the earnings per share of common stock. Earnings per share of common stock Now, compute the earnings per share of common stock for both companies. (Round your answers to the nearest cent.) Better Digital Every Zone Earnings per share of common stock Choose from any list or enter any number in the input fields and then continue to the next question. Assume that you are purchasing an investment and have decided to invest in a company in the Your strategy is to invest digital phone business. You have narrowed the choice to Better Digital Corp. and Every Zone, Inc. good shape financially. A and have assembled the following data. depends on the results o (Click to view the income statement data.) Read the requirements. (Click to view the balance sheet and market price data.) Earnings per share of common stock Requirement 1f. Compute the price/earnings ratio for both companies for the current year. Begin by selecting the formula to compute the price/earnings ratio. Pricelearnings ratio = Now, compute the price/earnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Better Digital Every Zone Price/earnings ratio Choose from any list or enter any number in the input fields and then continue to the next question. Reflect in ePortfolio Requirement 1g. Compute the dividend payout for both companies for the current year, Begin by selecting the formula to compute the dividend payout Dividend payout Now.compute the dividend payout for both companies. (Round interim answers to two decimal places, XXX, and your final answers to the nearest whole percent, X%.) Better Digital Every Zone Dividend payout Now, compute the dividend payout for both companies. (Round interim answers to two decimal places, X.XX, and your final answers to the Better Digital Every Zone Dividend payout % % Requirement 2. Decide which company's stock better fits your investments strategy. common stock seems to fit the investment strategy better. Its price/earnings ratio is On the majority of the ratios, and hoose from any list or enter any number in the input fields and then continue to the next question. ind have decided to invest in a company in the hoje Data Table Your strategy is to invest in companies that have low pric analyzed X Selected income statement data for the current year: ar Every Zone whole pe 496,035 Better Digital 423,035 $ 209,000 0 Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income 260,000 19,000 60,000 76,000 Print Done e input fields and then continue to the next question. complete) i Data Table X Selected balance sheet and market price data at the end of the current year: Better Digital Every Zone Current Assets: 28,000 $ Cash Short-term Investments Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 41,000 35,000 21,000 14,000 48,000 100,000 16,000 66,000 17,000 Total Current Assets $ 187,000 $ 199,000 Total Assets $ $ 261,000 $ 329,000 Data Table pric zed Total Current Assets $ 329,000 261,000 $ 104,000 104,000 95,000 134,000 p pe Total Assets Total Current Liabilities Total Liabilities Common Stock: $1 par (10,000 shares) $1 par (15,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 10,000 15,000 195,000 157,000 96.00 131.82 0.90 0.70 Selected balance sheet data at the beginning of the current year: Print Done Activity Details Data Table Dividends Paid per Common Share 0.90 0.70 Selected balance sheet data at the beginning of the current year: Better Digital Every Zone 51,000 Balance sheet: Accounts Receivables, net Merchandise Inventory Total Assets Common Stock: 40,000 $ 80,000 259,000 86,000 270,000 10,000 $1 par (10,000 shares) $1 par (15,000 shares) 15,000 Print Done Activity Details 1 3 Requirements a. 1. Compute the following ratios for both companies for the current year: 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. Print Done Activity Details

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