Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great Adventures Problem 12-1 [The following information applies to the questions displayed below. Income statement and balance sheet data for Great Adventures, Inc., are provided

image text in transcribedimage text in transcribedimage text in transcribed

Great Adventures Problem 12-1 [The following information applies to the questions displayed below. Income statement and balance sheet data for Great Adventures, Inc., are provided below GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 Revenues: $555,000 130,000 Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $685,000 Total revenues Expenses 76,000 304,876 56,000 Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 30,324 60,600 Total expenses 527,800 $157,200 Net income GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase () or Decrease (D) 2020 2019 Assets Current assets: Cash 313,784 54,000 17,900 144,000 169,784 () 13,000 () 3,300 () 41,000 14,600 Accounts receivable Inventory Other current assets 11,600 13,900 2.300 Long-term assets Land 600,000 () 0 000,000 () 600,000 0 1,000,000 Buildings 71 00n GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase (l or Decrease D) Assets Current assets: 313,784 44,000 169,784 13,0000 3,300 0 2,300) 1 Accounts recelvable 54,000 1,000 17,900 Other current assets 11,600 Long-term assets 0 1000,0000 1,000,000 71,000 (82,750 Ecquipment Less: Accumulated depreclaton (26750, 560000) $1,987834$ 25545o Total assets $ 1,987834 $ 255.450 Liablities and Stockholders' Equity Current liabilities Accounts payable Interest payable $12,900 $9,600 3,300 60,600 9,600 Long-term liablities: Notes payable Stockholders' equity: Common stock 555,284 33,000 522,284 120,000 20,000 100,000 1,105,000 42.200 0 O (60,000) Paid-in cepital 1105,000o 193,240 Treasury stock $ 1,987,834255,450 Total liabilities and stockholders' equily As you can tell om the financial statements 2020 was an especial y busy year. Tony and Suzie ere able to use he S1 2 on received om the issuance of 100,000 shares of stock to hire a cos uction company for $1 million to build the cabins, dining facilities ro es course and the outdoor swimming pool. They even put in baby pool to celebrate the birth of their firstbom son little venture Matheson Assume all sales and services are on credit. 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 millian to bulld the cabins, dining faciities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of thelr firstbom son, Ittle Venture Matheson. Assume all sales and services are on credit. References Section Break Great Adventures Problem 12-1 velue: Required information 15.00 points 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 2 decimal places.) Receivables turnover ratio inies b. Average collection period days | Inventory turnover ratio imes c. d. Average days in inventory days e. Current ratio to 1 1. Acid-test ratio to 1 g Debt to equity ratio Times interest eance ratio incs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Energy Auditing Reference Handbook

Authors: Steve Doty

3rd Edition

1498769268, 978-1498769266

More Books

Students also viewed these Accounting questions

Question

What are internal control systems?

Answered: 1 week ago

Question

How We Listen?

Answered: 1 week ago