the balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 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 risk ratios for 2021: (Round your answers to 1 decimal place.) 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?multiple choice Yes No

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

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