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
Acme Writers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.