Income statement and balance sheet data for Great Adventures, Inc., are provided below.

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.

Required:

1. Calculate the following risk ratios for 2020.

2. Calculate the following profitability ratios for 2020.

GREAT ADVENTURES, INC Income Statement For the Year Ended December 31, 2020 Revenues Service revenue (clinic, racing. TEAM) Sales revenue (MU watches) $563,000 138,000 Total revenues Expenses: $701,000 Cost of goods sold (MU watches Operating expenses Depreclation expense Interest expense Income tax expense 0,000 305.276 60000 30,724 63,000 Total expenses 539,000 $162,000 Net Income GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase () or Decrease (D) 2019 2020 Assets Current assets: Cash Accounts recelvable Inventory Other current assets 321,736 $ 148,000 45,000 15,000 12,000 173,736 () 15,000 () 3,500 () 2,500 () 60,000 18,500 14,500 Long-term assets: 500,000 () 1,100,000 () Land Bulldings Equipment Less: Accumulated depreclation 500,000 1100,000 75,000 (87,750) 0 0 75,000 (27,750) 60,000 (l) $ 2,001,986 $267,250 Total assets Liabilties and Stockholders' Equity Current liablities: $13,500 850 63,000 3,500 () 20,000 ) 562,236 () Accounts payable Interest payable Income tax payable $10,000 850 43,000 Long-term liabilties 597,236 35,000 Notes payable Stockholders' equity: 25,000 0 153,400 0 100,000 () 1105,500 () 42,500 ) (99,000) () Common stock Pald-In capital Retalned earnings Treasury stock 125,000 1,105,500 195,900 (99,000) $ 2,001,986 $267,250 Total labillities and stockholders' equity a. Receivables turnover ratio b. Average collection period c. Inventory turnover ratio d. Average days in inventory e. Current ratio f. Acid-test ratio g. Debt to equity ratio h. Times interest earned ratio times tim days times days to 1 to 1 times a. Gross profit ratio (on the MU watches) b. Return on assets c. Profit margin d. Asset turnover e. Return on equity times