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The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 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 $242,000 98,000 $130,000 102,000 105,000 90,000 5,000 3,000 580,000 580,000 890,000 770,000 (528,000) (368,000) $1,392,000 $1,307,000 $109,000 $95,000 7,000 13,000 9,000 6,000 110,000 220,000 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 2024: 1. Net income is $184,000. 2. Sales on account are $1,890,000. (All sales are credit sales.) 3. Cost of goods sold is $1,394,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following profitability ratios for 2024: (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 % % % times %

The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 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 $242,000 98,000 $130,000 102,000 105,000 90,000 5,000 3,000 580,000 580,000 890,000 770,000 (528,000) (368,000) $1,392,000 $1,307,000 $109,000 $95,000 7,000 13,000 9,000 6,000 110,000 220,000 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 2024: 1. Net income is $184,000. 2. Sales on account are $1,890,000. (All sales are credit sales.) 3. Cost of goods sold is $1,394,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following profitability ratios for 2024: (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 % % % times %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 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 $242,000 98,000 $130,000 102,000 105,000 90,000 5,000 3,000 580,000 580,000 890,000 770,000 (528,000) (368,000) $1,392,000 $1,307,000 $109,000 $95,000 Interest payable 7,000 13,000 Long-term liabilities: Income tax payable Notes payable 9,000 6,000 110,000 220,000 Stockholders' equity: Common stock 800,000 800,000 Retained earnings Total liabilities and stockholders' equity 357,000 $1,392,000 173,000 $1,307,000 Additional information for 2024: 1. Net income is $184,000. 2. Sales on account are $1,890,000. (All sales are credit sales.) 3. Cost of goods sold is $1,394,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following profitability ratios for 2024: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio % b. Return on assets % c. Profit margin % d. Asset turnover times e. Return on equity %
Transcribed Image Text:The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 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 $242,000 98,000 $130,000 102,000 105,000 90,000 5,000 3,000 580,000 580,000 890,000 770,000 (528,000) (368,000) $1,392,000 $1,307,000 $109,000 $95,000 Interest payable 7,000 13,000 Long-term liabilities: Income tax payable Notes payable 9,000 6,000 110,000 220,000 Stockholders' equity: Common stock 800,000 800,000 Retained earnings Total liabilities and stockholders' equity 357,000 $1,392,000 173,000 $1,307,000 Additional information for 2024: 1. Net income is $184,000. 2. Sales on account are $1,890,000. (All sales are credit sales.) 3. Cost of goods sold is $1,394,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following profitability ratios for 2024: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio % b. Return on assets % c. Profit margin % d. Asset turnover times e. Return on equity %
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