The balance sheet for Plasma Screens Corporation and additional information are provided below.

Additional Information for 2012:
1. Net income is $69,000.
2. Sales on account are $1,520,000.
3. Cost of goods sold is $1,160,000.
Required:
1. Calculate the following risk ratios for 2012:
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.

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PLASMA SCREENS CORPORATION Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash Accounts receivable Inventory Investments $ 112,000 78,000 95,000 4,000 $ 120,000 92,000 80,000 2,000 Long-term assets: Land Equipment Less: Accumulated depreciation 480,000 790,000 (428,000) $1,131,000 480,000 670,000 (268,000) $1,176,000 Total assets Liabilities and Stockholders' Equit Current liabilities: Accounts payable Interest payable $ 99,000 6,000 8,000 $ 85,000 12,000 5,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 100,000 200,000 700,000 218,000 $1,131,000 700,000 174,000 $1,176,000 Retained earnings Total liabilities and stockholders' equity