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Great Adventures Problem AP12-1 Skip to question [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures,

Great Adventures Problem AP12-1

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[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, 2022
Net sales revenues $ 187,140
Interest revenue 340
Expenses:
Cost of goods sold $ 39,600
Operating expenses 64,820
Depreciation expense 18,350
Interest expense 9,528
Income tax expense 15,600
Total expenses 147,898
Net income $ 39,582

GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and 2021
2022 2021
Assets
Current assets:
Cash $ 274,574 $ 64,720
Accounts receivable 49,580 0
Inventory 9,200 0
Other current assets 1,120 5,380
Long-term assets:
Land 720,000 0
Buildings 855,000 0
Equipment 84,660 51,000
Accumulated depreciation (27,450 ) (8,550 )
Total assets $ 1,966,684 $ 112,550
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable $ 23,000 $ 3,240
Interest payable 1,300 860
Income tax payable 15,600 14,220
Other current liabilities 27,600 0
Notes payable (current) 70,239 0
Notes payable (long-term) 678,653 32,200
Stockholders equity:
Common stock 142,000 27,480
Paid-in capital 1,104,200 0
Retained earnings 60,092 34,550
Treasury stock (156,000 ) 0
Total liabilities and stockholders equity $ 1,966,684 $ 112,550

As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.

Great Adventures Problem AP12-1 Part 1

Required:

1. Calculate the following risk ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.)

image text in transcribed \begin{tabular}{|l|l|l|} \hline a. & Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) & times \\ \hline b. & Average collection period. & days \\ \hline c. & Inventory turnover ratio. & times \\ \hline d. & Average days in inventory. & days \\ \hline e. & Current ratio. & to 1 \\ \hline f. & Acid-test ratio. (Hint: There are no current investments) & to 1 \\ \hline g. & Debt to equity ratio. & % \\ \hline h. & Times interest earned ratio. & times \\ \hline \end{tabular}

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