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3. The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021
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The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 $ 198,000 $ 112,000 62,000 84,000 87,000 72,000 3,200 1,200 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 400,000 710,000 (348,000) $1,112,200 400,000 590,000 (188,000) $1,071,200 91,000 $ 77,000 5,000 11,200 7,000 4,200 100,000 200,000 620,000 620,000 289, 200 158,800 $1,112,200 $1,071,200 Additional information for 2021: 1. Net income is $130,400. 2. Sales on account are $1,248,300, 3. Cost of goods sold is $993,750, Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) Retained earnings Total liabilities and stockholders' equity 289, 200 158,800 $1,112,200 $1,071,200 Additional information for 2021 1. Net income is $130,400. 2. Sales on account are $1,248,300. 3. Cost of goods sold is $993,750. Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e Debt to equity ratio times times to 1 to 1 % 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Yes No Step by Step Solution
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