{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T18:15:56-04:00", "answer_date": "2024-05-26 18:15:56", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1754167", "url": "\/study-help\/questions\/exercise-12oa-evaluate-profitability-ratios-lu124-the-2021-income-statement-1754167", "question_creation_date_js": "2024-05-26T18:15:56-04:00", "question_creation_date": "May 26, 2024 06:15 PM", "meta_title": "[Solved] Exercise 12-OA Evaluate profitability rat | SolutionInn", "meta_description": "Answer of - Exercise 12-OA Evaluate profitability ratios (LU12-4) The 2021 income statement of Adrian Express reports sales of $20 | SolutionInn", "meta_keywords": "exercise,12-oa,evaluate,profitability,ratios,lu12-4,2021,income,statement,adrian,express,reports", "question_title_h1": " Exercise 12-OA Evaluate profitability ratios (LU12-4) The 2021 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and", "question_title": " Exercise 12-OA Evaluate profitability ratios (LU12-4) The 2021 income statement of", "question_title_for_js_snippet": "Exercise 12 OA Evaluate profitability ratios (LU12 4) The 2021 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and net income of $1,900,000 Balance sheet information is provided in the following table Assets Current assets Cash Accounts receivable ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 Inventory Long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 2020 $ 800,000 1,725,000 $ 910,000 1,175,000 2,175,000 1,625,000 5,000,000 4,390,000 $9,700,000 $8,100,000 $2,030,000 $1,820,000 2, 490,000 2,025, 000 3, 155, 000 $9,700,000 Industry averages for the following profitability ratios are as follows Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45 25 15 6 5 times 35 2,560,000 1,975, 000 1, 745, 000 $8,100,000 Required 1 Calculate the five profitability ratios listed above for Adrian Express (Round your answers to 1 decimal place ) Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover times Return on equity ", "question_description": "\"image", "transcribed_text": "Exercise 12-OA Evaluate profitability ratios (LU12-4) The 2021 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and net income of $1,900,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 2020 $ 800,000 1,725,000 $ 910,000 1,175,000 2,175,000 1,625,000 5,000,000 4,390,000 $9,700,000 $8,100,000 $2,030,000 $1,820,000 2, 490,000 2,025, 000 3, 155, 000 $9,700,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 6.5 times 35% 2,560,000 1,975, 000 1, 745, 000 $8,100,000 Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio % Return on assets % Profit margin % Asset turnover times Return on equity %", "related_book": { "title": "Financial Accounting", "isbn": "9780077506902, 78025540, 77506901, 978-0078025549", "edition": "3rd edition", "authors": "J. David Spiceland, Wayne Thomas, Don Herrmann", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/314.jpg", "uri": "\/textbooks\/financial-accounting-3rd-edition-314", "see_more_uri": "\/textbooks\/business-healthcare-management-3338" }, "free_related_book": { "isbn": "979-8713045272", "uri": "\/textbooks\/accounting-ledger-book-for-home-or-business-979-8713045272-126199", "name": "Accounting Ledger Book For Home Or Business", "edition": "" }, "question_posted": "2024-05-26 18:15:56", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/using-matlab-problem-42-ask-the-user-to-enter-hisher-396304", "description": "Problem 4.2 Ask the user to enter his\/her age, with the prompt: \"How old are you? Please enter your age as a number between 0 and 120. -> \". 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