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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 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 242,000 | $ | 130,000 | ||||
Accounts receivable | 98,000 | 102,000 | ||||||
Inventory | 105,000 | 90,000 | ||||||
Investments | 5,000 | 3,000 | ||||||
Long-term assets: | ||||||||
Land | 580,000 | 580,000 | ||||||
Equipment | 890,000 | 770,000 | ||||||
Less: Accumulated depreciation | (528,000 | ) | (368,000 | ) | ||||
Total assets | $ | 1,392,000 | $ | 1,307,000 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 109,000 | $ | 95,000 | ||||
Interest payable | 7,000 | 13,000 | ||||||
Income tax payable | 9,000 | 6,000 | ||||||
Long-term liabilities: | ||||||||
Notes payable | 110,000 | 220,000 | ||||||
Stockholders' equity: | ||||||||
Common stock | 800,000 | 800,000 | ||||||
Retained earnings | 357,000 | 173,000 | ||||||
Total liabilities and stockholders' equity | $ | 1,392,000 | $ | 1,307,000 | ||||
Additional information for 2021:
- Net income is $184,000.
- Sales on account are $1,890,000.
- Cost of goods sold is $1,394,250.
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 % 13.6% 9.7% 1.4 times %
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