PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land 580,000 890,000 (528,000) $1,392,000 $1,307,000 580,000 770,000 (368,000) 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 $ 109,000 $ 7,000 9,000 95,000 13,000 6,000 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land 580,000 890,000 (528,000) $1,392,000 $1,307,000 580,000 770,000 (368,000) 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 $ 109,000 $ 7,000 9,000 95,000 13,000 6,000 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 8EP
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Transcribed Image Text:PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021
2020
Assets
Current assets:
Cash
Accounts receivable
Inventory
Investments
$242,000
98,000
105,000
5,000
$ 130,000
102,000
90,000
3,000
Long-term assets:
Land
Equipment
Less: Accumulated depreciation
580,000
890,000
(528,000)
$1,392,000
580,000
770,000
(368,000)
$1,307,000
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payab le
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
$ 109,000
7,000
9,000
95,000
13,000
6,000
2$
110,000
220,000
800,000
357,000
$1,392,000 $1,307,000
800,000
173,000
Total liabilities and stockholders' equity
Additional information for 2021:
1. Net income is $184,000.
2. Sales on account are $1,890,000.
3. Cost of goods sold is $1,394,250.
Transcribed Image Text:Required:
1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.)
Risk Ratios
times
a. Receivables turnover ratio
times
b. Inventory turnover ratio
to 1
c. Current ratio
to 1
d. Acid-test ratio
%
e. Debt to equity ratio
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