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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
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 217,600 $ 110,000 58,000 82,000 85,000 70,000 3,000 1,000 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 380,000 380,000 690,000 570,000 (328,000) (168,000) $1,105,600 $1,045,000 $ 89,000 5,000 7,000 75,000 11,000 4,000 120,000 240,000 600,000 600,000 284,600 115,000 $1,105,600 $1,045,000 Additional information for 2021: 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 risk ratios for 2021: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d Acid-test ratio e. Debt to equity ratio times times to 1 to 1 % 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Yes No
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