Business, 18.06.2020 02:57 anthonysutton82

The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021

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:
Calculate the following profitability ratios for 2021.

Profitability Ratio

a. Gross profit ratio
b. Return on assets 13.6%
c. Profit margin 9.7%
d. Asset turnover 1.4
e. Return on equity

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