The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000,
Question:
The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table.
Industry averages for the following profitability ratios are as follows:Gross profit ratio 45%
Return on assets 25%
Profit margin 15%
Asset turnover 2.5 times
Return on equity 35%
Required:
1. Calculate the five profitability ratios listed above for Adrian Express.
2. Do you think the company is more profitable or less profitable than the industry average?
Explain your answer.
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Requirement 1 Profitability Ratios Calculations Gross ...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
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