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 $ 180,160 66,000 89,000 3,400 114,000 86,000 74,000 420,000 730,000 (368,000) $1,120,560 420,000 610,000 (208,000) $1,097,400 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 $ 93,800 5,000 7,000 79,000 11,400 4,400 110,000 220,000 640,000 264,760 $1,120,560 640,000 142,600 $1,097,400 Additional information for 2021: 1. Net income is $122,160. 2. Sales on account are $1,314,800. 3. Cost of goods sold is $1,035,050. Required: 1. Calculate the following profitability ratios for 2021: (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 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