3 Check my work GREAT ADVENTURES, INc. Income Statement For the year ended December 31, 2022 Net sales revenues $195,500 Interest revenue 420 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense $40,000 69,700 18,750 10,526 Income tax expense 16,000 Total expenses 154,976 $ 40,944 Net income GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 Assets Current assets: $ 64,800 2$ 308,756 50,300 10,000 1,200 Cash Accounts receivable Inventory Other current assets 5,700 Long-term assets: Land 800,000 Buildings Equipment Accumulated depreciation 875,000 92,900 (28,250) 55,000 (8,750) $2,109,906 $116,750 Total assets Liabilities and Stockholders' Equity Current liabilities : Accounts payable Interest payable Income tax payable 3,400 900 23,800 1,500 16,000 30,000 78,321 14,300 Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: 752,391 33,000 %24 10 of 10 3 Check my work 3U, UUU 78,321 utner current liapili ties Notes payable (current) Notes payable (long-term) Stockholders' equity: 33,000 752,391 150,000 1,177,000 60,894 (180,000) 30,200 Common stock Paid-in capital Retained earnings 34,950 Treasury stock Total liabilities and stockholders' equity $2,109,906 $116,750 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 1 decimal place.) 7.8 times Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) a. Average collection period. 47.1 days b. 8.0 times Inventory turnover ratio. C. Average days in inventory. 45.6 days d. Current ratio. to 1 e. Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio. f. to 1 g. Times interest earned ratio. h. times %24 10 of 10 2. Calculate the following profitability ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) Gross profit ratio. (Hint: Use net sales revenues) Return on assets. a. b. Profit margin. (Hint: Use net sales revenues) C. Asset turnover. (Hint: Use net sales revenues) d. times Return on equity. e