Net Sales

Assume that you are purchasing an investment and have decided to invest in a company in the smartphone business. You have narrowed the choice to Best Digital Electronics or Zone Network Electronics and have assembled the following data. Selected income statement data for the current year follows: Income StatementBest Digital     Zone Network      Net sales (all on credit) $467,200$569,400Cost of goods sold$203,000$242,000Interest expense$0$19,500Net income$72,800$95,400 Selected balance sheet data at the beginning of the current year follow: Balance SheetBest Digital     Zone Network      Current receivables, net $45,060$53,780Inventories$73,000$73,000Total assets$262,000$274,000Common stock $1 par (13,000 shares)$13,000   $1 par (18,000 shares)   $18,000 Selected balance sheet and market price data at the end of the current year follow: Best Digital     Zone Network      Current assets  Cash$ 27,000 $ 18,000 Short-term investments $ 38,520 $ 15,400Current receivables, net  $37,500 $ 44,500 Inventories$ 72,000 $ 103,000Prepaid expenses  $ 4,980 $ 6,100Total current assets $180,000  $ 187,000Total assets $300,000  $ 325,000Total current liabilities   $102,000 $95,000Total liabilities   $102,000 $ 143,000Common stock    $1 par (13,000 shares) $ 13,000  $1 par (18,000 shares)   $ 18,000  Total stockholders’ equity $198,000  $ 182,000Market price per share of common stock   $ 98.00$ 100.70  Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Compute the following ratios for both companies for the current year and decide which company’s stock better fits your investment strategy. Assume all sales are on credit. Acid-test ratio Inventory turnover Days’ sales in average receivables Debt ratio Gross profit percentage Earnings per share of common stock Price/earnings ratio Please use the library for your research. Do not use sites such as Wikipedia or Investopedia as your sources. If you use a website, make sure you review APA guidelines as to how to properly format websites as a source. Minimum word requirement: 400; include a cover page and a separate reference page listing your sources in proper APA style. Minimum 2 sources For more information on Net Sales read this: https://en.wikipedia.org/wiki/Sales_(accounting)

Don't use plagiarized sources. Get Your Custom Essay on
Net Sales
Just from $13/Page
Order Essay
Calculate your order
275 words
Total price: $0.00

Top-quality papers guaranteed

54

100% original papers

We sell only unique pieces of writing completed according to your demands.

54

Confidential service

We use security encryption to keep your personal data protected.

54

Money-back guarantee

We can give your money back if something goes wrong with your order.

Enjoy the free features we offer to everyone

  1. Title page

    Get a free title page formatted according to the specifics of your particular style.

  2. Custom formatting

    Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.

  3. Bibliography page

    Don’t pay extra for a list of references that perfectly fits your academic needs.

  4. 24/7 support assistance

    Ask us a question anytime you need to—we don’t charge extra for supporting you!

Calculate how much your essay costs

Type of paper
Academic level
Deadline
550 words

How to place an order

  • Choose the number of pages, your academic level, and deadline
  • Push the orange button
  • Give instructions for your paper
  • Pay with PayPal or a credit card
  • Track the progress of your order
  • Approve and enjoy your custom paper

Ask experts to write you a cheap essay of excellent quality

Place an order