Exercise 12-7B Calculate risk ratios (LO12-3) Balance sheets for Plasma Screens Corporation along with additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash $ 192,000 $ 120,000 Accounts receivable 84,000 74,000 Inventory 75,000 60,000 Investments 6,000 8,000 Long-term assets: Land 500,000 500,000 Equipment 800,000 800,000 Less: Accumulated depreciation (320,000) (160,000) Total assets $ 1,337,000 $ 1,402,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 172,000 $ 175,000 Interest payable 4,000 10,000 Income tax payable 6,000 7,000 Long-term liabilities: Notes payable 100,000 250,000 Stockholders' equity: Common stock 800,000 800,000 Retained earnings 255,000 160,000 Total liabilities and stockholders' equity $ 1,337,000 $ 1,402,000 Additional information for 2018: 1. Net income is $95,000. 2. Sales on account are $1,800,000. 3. Cost of goods sold is $1,100,000. Required: 1. Calculate the following risk ratios for 2018: (Round your answers to 1 decimal place.) 2. For the same company, will the current ratio always be higher than the acid-test ratio? Yes No