The balance sheets for Dual Monitors Corporation and additional information are provided below. DUAL MONITORS CORPORATIONBalance SheetsDecember 31, 2024 and 2023 20242023Assets Current assets: Cash$158,800$123,000Accounts receivable84,00095,000Inventory98,00083,000Investments4,3002,300Long-term assets: Land510,000510,000Equipment820,000700,000Less: Accumulated depreciation(458,000)(298,000)Total assets$1,217,100$1,215,300Liabilities and Stockholders' Equity Current liabilities: Accounts payable$102,000$88,000Interest payable7,50012,300Income tax payable9,5005,300Long-term liabilities: Notes payable100,000200,000Stockholders' equity: Common stock730,000730,000Retained earnings268,100179,700Total liabilities and stockholders' equity$1,217,100$1,215,300Additional information for 2024:Net income is $88,400.Sales on account are $1,628,900.Cost of goods sold is $1,230,800.Required:1. Calculate the following risk ratios for 2024:2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Required 1Required 2Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.)Risk Ratiosa. Receivables turnover ratiob. Inventory turnover ratioc. Current ratiod. Acid-test ratiotimestimese. Debt to equity ratio%

Detailed explanation:a. Receivables turnover ratio = sales on account / average accounts receivables…

Answered: Required 1 Required 2 Calculate the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The balance sheets for Dual Monitors Corporation and additional information are provided below.

	2024	2023
DUAL MONITORS CORPORATION
Balance Sheets
December 31, 2024 and 2023
Assets
Current assets:
Cash	$158,800	$123,000
Accounts receivable	84,000	95,000
Inventory	98,000	83,000
Investments	4,300	2,300
Long-term assets:
Land	510,000	510,000
Equipment	820,000	700,000
Less: Accumulated depreciation	(458,000)	(298,000)
Total assets	$1,217,100	$1,215,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$102,000	$88,000
Interest payable	7,500	12,300
Income tax payable	9,500	5,300
Long-term liabilities:
Notes payable	100,000	200,000
Stockholders' equity:
Common stock	730,000	730,000
Retained earnings	268,100	179,700
Total liabilities and stockholders' equity	$1,217,100	$1,215,300

Additional information for 2024:

Net income is $88,400.
Sales on account are $1,628,900.
Cost of goods sold is $1,230,800.

Required:
1. Calculate the following risk ratios for 2024:
2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?