Exercise 12-8 (Algo) Calculate profitability ratios (LO12-4) The balance sheets for Video Screens Corporation and additional information are provided below. VIDEO SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 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 Additional information for 2024: 1. Net income is $70,240. $128,240 $121,000 80,000 93,000 96,000 81,000 4,100 2,100 490,000 490,000 800,000 680,000 (438,000) (278,000) $1,160,340 $1,189,100 $99,200 $86,000 6,500 12,100 8,500 5,100 110,000 220,000 710,000 710,000 226,140 $1,160,340 155,900 $1,189,100 2. Sales on account are $1,557,000. (All sales are credit sales.) 3. Cost of goods sold is $1,185,900. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Calculate the following profitability ratios for 2024: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio b. Return on assets c. Profit margin d. Asset turnover e. Return on equity % % % times %