The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of

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The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $9.6 million, and net income of $1.6 million. Balance sheet information is provided in the following table. All amounts are in thousands.
The 2012 income statement of Adrian Express reports sales of

Industry averages for the following four risk ratios are as follows:
Average collection period.............25 days
Average days in inventory............60 days
Current ratio...............................2 to 1
Debt to equity ratio........................50%
Required:
1. Calculate the four risk ratios listed above for Adrian Express in 2012.
2. Do you think the company is more risky or less risky than the industry average? Explain your answer.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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