Exercise 12-7A Calculate risk ratios (LO12-3)

Kercises (Static) Saved Exercise 12-7A Calculate risk ratios (LO12-3) The balance sheets for Plasma Screens Corporation and additional information are provided below. 2021 2020 $ 242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,800 PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 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 580,000 580,000 890,000 770,000 (528,000) (368,000) $1,392,000 $1,307,000 $ $ 109,000 7,000 9,000 95,000 13,000 6,000 110,000 220, cee 800, eee 800, een 357,000 173,000 $1,392,eee $1,387,000 ctv Retained earnings Total liabilities and stockholders' equity 800,000 357,080 173,000 $1,392,000 $1,307,600 Additional information for 2021: eBook Hint 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250. Ask oferences Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) times times Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio Debt to equity ratio to 1 to 1 e 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-tes 4 of 7 Me CW