Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. using business memo format explain to the chief ac

Using business memo format explain to the Chief Accounting Officer and Chief Financial Officer why...

80.2K

Verified Solution

Question

Accounting

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students