5.) The 2024 income statement of Adrian Express reports sales of $17,262,000, cost of goods sold of $10,624,000, and net income of $1,640,000. Balance sheet information is provided in the following table.

ADRIAN EXPRESS
Balance Sheets
December 31, 2024 and 2023
	2024	2023
Assets
Current assets:
Cash	$640,000	$800,000
Accounts receivable	1,480,000	1,040,000
Inventory	1,880,000	1,440,000
Long-term assets	4,840,000	4,280,000
Total assets	$8,840,000	$7,560,000
Liabilities and Stockholders' Equity
Current liabilities	$1,980,000	$1,700,000
Long-term liabilities	2,340,000	2,440,000
Common stock	1,960,000	1,960,000
Retained earnings	2,560,000	1,460,000
Total liabilities and stockholders' equity	$8,840,000	$7,560,000

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 2024. 2. Do you think the company is more risky or less risky than the industry average?

Chart for #1:

Calculate the four risk ratios listed above for Adrian Express in 2024. (Use 365 days in a year. Round your answers to 1 decimal place. Do not round your intermediate calculations.)

Risk Ratios
Average collection period		days
Average days in inventory		days
Current ratio
Debt to equity ratio		%

2.

Do you think the company is more risky or less risky than the industry average?