Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10 points The 2021 income statement of Adrian Express reports sales of $16,932,000, cost of goods sold of $10,363,500, and net income of $1,630,000.

image text in transcribed

10 points The 2021 income statement of Adrian Express reports sales of $16,932,000, cost of goods sold of $10,363,500, and net income of $1,630,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable ADRTAN EXPRESS Balance Sheets December 31, 2021 and zeze 2021 2020 $630,000 $790,000 1,860,000 1,430,000 4,270,000 $8,780,000 $7,520, Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term 11abilities Common stock! Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio) 25 days 60 days 2 to 1 Sex 000 000 970,000 2,490,000 Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year. Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Risk Ratios Average collection period 26.86 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions

Question

Let v = (2, 5) and w = (3, 2). Find the length of v + w.

Answered: 1 week ago

Question

3-1. Give an example of hierarchical planning in an organization.

Answered: 1 week ago