Using business memo format explain to the Chief Accounting Officer and Chief Financial Officer why you made your decision. Be specific, identify and describe the key ratios which influenced your decision. In your explanation refer to your ratio analysis and external sources for support to justify your decision:

	Best Digital	Very Zone
Acid-test ratio	0.96	0.85

	Best Digital	Very Zone
Inventory turnover	2.82	2.79

	Best Digital	Very Zone
Days' sales in receivables	34	36

	Best Digital		Very Zone
Debt ratio	39.6	%	40.1	%

	Best Digital	Very Zone
Earnings per share of common stock	$5.60	$4.93

	Best Digital	Very Zone
Price/earnings ratio	18	25

	Best Digital		Very Zone
Dividend payout	20	%	14	%

Best Digital's common stock seems to fit the investment strategy better. Its price/earnings ratio is lower than that of Very Zone,

and Best Digital appears in better shape financially than Very Zone. On the majority of the ratios, Best Digital looks better than Very Zone.