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i Data Table - X Selected income statement data for the current year Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense

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i Data Table - X Selected income statement data for the current year Net Sales Revenue (all on credit) Cost of Goods Sold Interest Expense Net Income Best Digital 416,830 $ 210,000 Very Network 493,115 258,000 19,000 66,000 49,000 Print Done Clear All Data Table Selected balance sheet and market price data at the end of the current year Best Digital Very Network Current Assets Cash Short-term Investments Accounts Receivables, Net Merchandise Inventory 28,000 $ 39,000 39,000 66,000 19,000 191,000 $ 20,000 17.000 46,000 100,000 17,000 200.000 Prepaid Expenses 5 Total Current Assets Total Assets Total Current Liabilities Total Liabilities Common Stock $1 par (10,000 shares) 264 000 $ 104,000 104,000 328 000 96,000 131,000 10,000 si par (14,000 shares) shares) Total Stockholders' Equity Market Price per Share of Common Stock 14,000 197.000 160,000 83.30 122.46 Print Done DLL UN Read the requirements. 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. Print Done Clear All embled the following data. Click to view the income statement data) ! (Click to view the balance sheet and market price data.) Requirement1a. 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 turnover ratio Annual dividend per share / Earnings per share (Cash + Cash equivalents) / Total current liabilities (Cash Short-term investments Accounts receivable, net) Total current liabilities 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 current liabilities Total liabilities / Total asset Choose from any drop-down list and then click Check Answer It remaining Clear ute e 9

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