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

Additional Information for 2015:
1. Net income is $79,000.
2. Sales on account are $1,890,000.
3. Cost of goods sold is $1,394,250.

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. When we compare two companies, can one have a higher current ratio while the other has a higher 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 $ 242,000 98,000 105,000 5,000 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 580,000 770,000 (368,000) $1,307 000 Total assets $1.392,000 Liabilities and Stockholders' Equit Current liabilities: Accounts payable Interest payable $109,000 7,000 9,000 $ 95,000 13,000 6,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 110,000 220,000 800,000 357,000 $1,392,000 800,000 173,000 $1.307,000 Retained earnings Total liabilities and stockholders' equity