As you can tell from the financial statements, 2020 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 shares of stock to hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson. Assume all sales and services are on credit. Great Adventures Problem 12-1 Part 1 Required: 1. Calculate the following risk ratios for 2020. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) a. Receivables turnover ratio times b. Average collection period. days C. Inventory turnover ration times d. Average days in inventory days e. Current ratio to 1 f. Acid-test ratio. to 1 9. Debt to equity ratio % h. Times interest earned ratio. times 2. Calculate the following profitability ratios for 2020. (Round your answers to 1 decimal place.) a. Gross profit ratio (on the MU watches) % b. Return on assets % C. Profit margin % d. Asset turnover times e. Return on equity % GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 Revenues: Service revenue (clinic, racing, TEAM) $543,000 Sales revenue (MU watches) 118,000 Total revenues Expenses: $661,000 Cost of goods sold (MU watches) 70,000 Operating expenses 304,276 Depreciation expense 50,000 Interest expense 29,724 Income tax expense 57,000 Total expenses Net income 511,000 $150,000 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase (I) or 2020 2019 Decrease (D) $ 322,362 $ 138,000 184,362 (1) 45,000 35,000 10,000 (1) 17,000 14,000 3,000 (1) 13,000 500,000 1,000,000 11,000 2,000 (1) 500,000 (1) 0 1,000,000 (1) 65,000 65,000 (75,250) (25,250) 50,000 (1) $ 1,887,112 $ 237,750 Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Paid-in capital $12,000 750 $9,000 3,000 (1) 750 57,000 38,000 19,000 (1) 492,362 30,000 462,362 (1) 120,000 20,000 100,000 (1) 1,105,000 0 1,105,000 (1) Retained earnings 175,000 140,000 35,000 (1) Treasury stock (75,000) 0 (75,000) (1) Total liabilities and stockholders' equity $ 1,887,112 $ 237,750