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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 $ $ 232,600 96,000 104,000 4,900 129,000 101,000 89,000 2,900 570,000 880,000 (518,000) $1,369,500 570,000 760,000 (358,000) $1,293,900 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 $ $ 108,000 7,500 9,500 94,000 12,900 5,900 100,000 200,000 790,000 354,500 $1,369,500 790,000 191,100 $1,293,900 Additional information for 2021: 1. Net income is $163,400. 2. Sales on account are $1,851,800. 3. Cost of goods sold is $1,370,300. Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio times times b. Inventory turnover ratio c. Current ratio to 1 d. Acid-test ratio to 1 e. Debt to equity ratio % 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? O Yes O No
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