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 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 2021.

2. Do you think the company is more risky or less risky than the industry average? Explain your answer.

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ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: $ 700,000 1,600,000 Cash $ 860,000 Accounts receivable 1,100,000 Inventory 2,000,000 1,500,000 4,340,000 $7,800,000 Long-term assets 4,900,000 $9,200,000 Total assets Liabilities and Stockholders' Equity $1,920,000 2,400,000 Current liabilities $1,760,000 Long-term liabilities Common stock 2,500,000 1,900,000 1,900,000 Retained earnings 2,980,000 $9,200,000 1,640,000 $7,800,000 Total liabilities and stockholders' equity