Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

$189,230 360 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $39,700

image text in transcribed
image text in transcribed
image text in transcribed
$189,230 360 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $39,700 Operating expenses 66,040 Depreciation expense 18,450 Interest expense 9,777 Income tax expense 15,700 Total expenses Net income 149,667 $ 39,923 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 283, 118 49,760 9,400 1,140 $ 64,740 0 0 5,460 740,000 860,000 86,720 (27,650). $2,002,488 0 0 52,000 (8,600) $113,600 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity $ 23,200 $3,280 1,350 870 15,700 14,240 28,200 0 72,259 0 697,086 32,400 144,000 1,122,400 60,293 (162,000) $2,002,488 28,160 0 34,650 0 $113,600 As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. Required: 1. Calculate the following risk ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to a decimal place.) a. times b. d. Receivables turnover ratio. (Hint: Uto net sales revenues for not credit salos) Average collection period Inventory turnover ratio Average days in inventory Current ratio. Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio days times days to 1 to 1 % 0 1. 9 h Times interest earned ratio. times

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

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

047169195X, 978-0471691952

More Books

Students also viewed these Accounting questions