The balance sheets for Plasma Screens Corporation and additional information are provided below.

Additional Information for 2021:
 1. Net income is $184,000.
 2. Sales on account are $1,890,000.
 3. Cost of goods sold is $1,394,250.

Required:
 1. Calculate the following profitability ratios for 2021:
 a. Gross profit ratio.
 b. Return on assets.
 c. Profit margin.
 d. Asset turnover.
 e. Return on equity.
 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Explain your answer.