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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, Corp. and Very Network, Inc and have assembled the following data (Click to view the income statement data.) Your strategy is to invest in companies that have low pricelearnings ratios but appear to be in good shape financially. Assume that you Readhe Data Table (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 rato(Cash Short-term investments + Accounts receivable, net) Total current Rabilities Now, compute the acid-test ratio for both companies. (Round your answers to two decimal places, X.XX.) Total Current Liabilities Total Liabilities Common Stock, $1 par (13,000 shares) S2 par (17,000 shares) Total Stockholders Equity Market Price per Share of Common Stock Dividends Paid per Common Share 100,000 100,000 13,000 99,000 133,000 34,000 191,000 114.48 0 20 162,000 Best Digita Very Network 71.55 S 0.60 S S Acid-test ratio Selected balance sheet data at the beginning of the current year Best DigitalVery Network Data Table Balance sheet Accounts Receivables, net Merchandise Inventory Total Assets 39,000 $ 83.000 258,000 13,000 50,000 87.000 277,000 Selected income statement data for the current year Best DigitalVery Network Common Stock, $1 par (13,000 shares) $2 par (17,000 shares) Net Sales (all on credit) Cost of Goods Sold Interest Expense Net Income 423,035 S 212,000 493,845 260,000 14,000 72,000 34 000 Clear All Print Done 62,000

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