Your strategy is to invest in companies that have low pricelearnings ratios but in good shape financially. Assume that you have analyzed all other factors an decision depends on the results of ratio analysis. 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 Digitized Corp. and Every Zone, Inc. and have assembled the following data. (Click to view the income statement data.) (Click to view the balance sheet and market price data.) Read the requirements. 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 = Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, X.XX.) Digitized Every Zone Acid-test ratio 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.) Digitized Every Zone Inventory turnover Requirement 1c. 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.) Digitized Every Zone Days' sales in receivables 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%.) Digitized 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.) Digitized Every Zone Earnings per share of common stock Requirement 1f. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the pricelearnings ratio. Pricelearnings ratio Now, compute the pricelearnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Digitized Every Zone Pricelearnings ratio Requirement 1f. Compute the pricelearnings ratio for both companies for the current year. Begin by selecting the formula to compute the pricelearnings ratio. Price/earnings ratio Now, compute the pricelearnings ratio for both companies. (Round interim and final answers to two decimal places, X.XX.) Digitized Every Zone Price/earnings ratio 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, X.XX, and your final answers to the whole percent, X%.) Digitized 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 pricelearnings ratio is and On the majority of the ratios, en continue to the next question. Digitized appears in better shape financially than Every Zone Every Zone appears in better shape financially than Digitized igital phone business. You have narrowed the choice to your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that vou have analyze other factors and that your decision depend * Data Table Read the requirements. Selected balance sheet and market price data at the end of the current year: cu Data Table X Digitized Every Zone Current Assets: Cash $ 21,000 Selected income statement data for the current year: 28,000 $ $ 42,000 Short-term Investments 19,000 45,000 S Every Zone 36,000 Digitized 417,925 $ $ 497.860 Accounts Receivables, Net Merchandise Inventory Prepaid Expenses 65,000 17,000 102,000 12,000 Net Sales Revenue (all on credit) ( Cost of Goods Sold Interest Expense Net Income 206,000 0 255,000 17,000 72,000 $ 188,000 $ Total Current Assets 199,000 58,000 Total Assets $ 264,000 $ 101,000 325,000 100,000 134,000 Print Done 101,000 11,000 Total Current Liabilities Total Liabilities Common Stock: $1 par (11,000 shares) $1 par (15,000 shares) Total Stockholders' Equity Market Price per Share of Common Stock Dividends Paid per Common Share 15,000 191,000 163,000 100.13 105.60 0.70 0.30 Selected balance sheet data at the beginning of the current year: laces, X.XX, and your final answers to the nearest whole percent, X%.) Digitized Every Zone 51,000 Balance sheet: Accounts Receivables, net Merchandise Inventory Total Assets 42,000 $ 82,000 258,000 86,000 275,000 is 7 and Common Stock