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

PLASMA SCREENS CORPORATION Balance Sheet December 31, 2018 and 2017
	2018		2017
Assets
Current assets:
Cash	$	215,040	$	128,000
Accounts receivable		94,000		100,000
Inventory		103,000		88,000
Investments		4,800		2,800
Long-term assets:
Land		560,000		560,000
Equipment		870,000		750,000
Less: Accumulated depreciation		(508,000)		(348,000)
Total assets	$	1,338,840	$	1,280,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	107,000	$	93,000
Interest payable		7,000		12,800
Income tax payable		9,000		5,800
Long-term liabilities:
Notes payable		120,000		240,000
Stockholders' equity:
Common stock		780,000		780,000
Retained earnings		316,240		149,200
Total liabilities and stockholders' equity	$	1,338,840	$	1,280,800

Additional information for 2018:

1. Net income is $167,040.

2. Sales on account are $1,813,900.

3. Cost of goods sold is $1,346,550.

Required:

1. Calculate the following profitability ratios for 2018

Profitability Ratio

.Gross profit ratio

.Return on assets

.Profit margin

.Asset turnovertimes

.Return on equity%

2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity?

	Yes
	No

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