The balance sheets for Plasma Screens Corporation and additional information are provided below.
Assets
​
Current assets:
Cash
Accounts receivable
Inventory
Investments
Long-term assets:
Land
Equipment
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders’ Equity
​
Current Iiabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders’ equity:
Common stock
Retained earnings
Total liabilities and stockholders’ equity
​
2018
$242,000
98,000
105,000
5,000
580,000
890,000
(528,000)
​
$1,392,000
​
$109,000
7,000
9,000
110,000
800,000
357,000
​
$1,392,000
​
2017
$130,000
102,000
90,000
3,000
580,000
770,000
(368,000)
​
$1,307,000
​
$95,000
13,000
6,000
220,000
800,000
173,000
​
$1,307,000
​
Additional Information for 2018: 1. Net income is 184,000. 2. Sales on account are184,000.2.Salesonaccountare 1,890,000. 3. Cost of goods sold is $ 1,394,250. 1. Calculate the following risk ratios for 2018: a. Receivables turnover ratio. b. Inventory turnover ratio. c. Current ratio. d. Acid-test ratio. 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? Explain your answer.