Exercise 12-8A Calculate profitability ratios (L012-4) 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 Assets Current assets: Cash $ 217,600 $ 110,000 Accounts receivable 58,000 82,000 Inventory 85,000 70,000 Investments 3,000 1,000 Long-term assets: Land 380,000 380,000 Equipment 690,000 570,000 Less: Accumulated depreciation (328,000) (168,000) Total assets $1,105,600 $1,045,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 89,000 $ 75,000 Interest payable 5,000 11,000 Income tax payable 7,000 4,000 Long-term liabilities: Notes payable 120,000 240,000 Stockholders' equity: Common stock 600,000 600,000 Retained earnings 284,600 115,000 Total liabilities and stockholders' equity $1,105,600 $1,045,000 Additional information for 2021: 1 Not Income le 160600 1. Net Income is $169,600. 2. Sales on account are $1,183,000. 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratlos for 2021: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio b. Return on assets c. Profit margin d. Asset tumover 0. Return on equity % % % times % 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Yes No