PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets Cash Accounts receivable Inventory Investments $ 128,500 119,000 76,000 94,000 3,900 91,000 79,000 1,900 Long-term assets Land 470,000 780,000 (418,000) 470,000 Equipment Less: Accumulated depreciation 660,000 (258,000) S 1,134,400 $ 1,162,900 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders' equity: Common stock $ 98,000 $ 84,000 6,000 8,000 11,900 4,900 240,000 120,000 690,000 212,400 690,000 132,100 Retained earnings $ 1,134,400 $ 1,162,900 Total liabilities and stockholders' equity Additional information for 2018 1. Net income is $80,300 2. Sales on account are $1,486,300 3. Cost of goods sold is $1,141,800 Required 1. Calculate the following risk ratios for 2018: (Round your answers to 1 decimal place.) Risk Ratios 17.8 times a. Receivables turnover ratio 13.2 times b. Inventory turnover ratio c. Current ratio 2.7 to 1 1.9 to 1 d. Acid-test ratio e. Debt to equity ratio 11.2% 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Yes No