Exercise 12-5A Evaluate risk ratios (LO12-3) The 2021 income statement of Adrian Express reports sales of $14,706,000, cost of goods sold of $8,624,000, and net income of $1,560,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets Assets Current assets: Cash Accounts receivable December 31, 2021 and 2020 2021 2020 $560,000 1,320,000 $720,000 960,000 Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-tern liabilities Common stock Retained earnings Total liabilities and stockholders' equity 1,720,000 1,360,000 4,760,000 4,200,000 58,360,000 $7,240,000 $1,980,000 $1,620,000 2,260,000 2,360,000 1,920,000 1,920,000 2,200,000 1,340,000 $8,360,000 $7,240,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio 25 days 60 days 2 to 1 < Prev 3 of 5 Next >>