Balance sheets for Plasma Screens Corporation along with additional information are provided below.

Additional Information for 2015:
1. Net income is $95,000.
2. Sales on account are $1,800,000.
3. Cost of goods sold is $1,100,000.
Required:
1. Calculate the following risk ratios for 2015:
a. Receivables turnover ratio.
b. Inventory turnover ratio.
c. Current ratio.
d. Acid-test ratio.
e. Debt to equity ratio.
2. For the same company, will the current ratio always be higher than the acid-test ratio? Explain youranswer.

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PLASMA SCREENS CORPORATION Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Current assets Cash Accounts receivable Inventory Investments S 192,000 84,000 75,000 6.000 S 120,000 74,000 60,000 8,000 Long-tem assets 500.000 800,000 (320.000) S1.337.000 500.000 800,000 (160.000) an Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equit Current liabilities Accounts payable Interest payable S 172,000 4.000 6.000 175,000 10,000 7,000 Income tax payable Long-term liabilities Notes payable Stockholders' equity: Common stock 100,000 250,000 800,000 800,000 160.000 $1.402.000 Retained earnings Total liabilities and stockholders equity S1.337.000