2 3.00 points Exercise 12-7 Calculate risk ratios (LO12-3) The balance sheets for Plasma Screens Corporation and additional information are provided below PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash $116,800$ 120,000 92,000 80,000 2,000 78,000 95,000 4,000 s receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation 480,000 790,000 (428,000) 480,000 670,000 (268,000) $ 1,135,800 $ 1,176,000 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts paya Interest payable Income tax payable $ 99,000 $ 85,000 12,000 5,000 ble 6,000 8,000 100,000 700,000 Long-term liabilities 200,000 Notes payable Stockholders' equity: Common stock Retained earnings 700,000 174,000 222,800 $ 1,135,800 $ 1,176,000 Total liabilities and stockholders' equity Additional information for 2018: 1. Net income is $48,800 2. Sales on account are $1,521,500 3. Cost of goods sold is $1,163,750. Required: 1. Calculate the following risk ratios for 2018: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio times times to 1 to 1 Inventory turnover ratioime c. Current ratio d. Acid-test ratio e. Debt to equity ratio 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? O Yes No