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
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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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 | ||||
| 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: |
(528,000 | ) | (368,000 | ) | ||||
| Total assets | $ | 1,392,000 | $ | 1,307,000 | ||||
| Liabilities and |
||||||||
| 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 | ||||||
| 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
multiple choice
-
Yes
-
No
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