Question
Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2014
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2014 Revenues: Service revenue (clinic, racing, TEAM) 565,000 Sales revenue (MU watches) 136,000 Total revenues $701,000 Expenses: Cost of goods sold (MU watches) 68,300 Operating expenses 294,276 Depreciation expense 49,600 Interest expense 32,454 Income tax expense 55,300 Total expenses 499,930 Net income $201,070
GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 2014 2013 Increase (I) or Decrease (D) Assets Current assets: Cash $ 633,877 $145,940 487,937 (I) Accounts receivable 43,600 33,200 10,400 (I) Inventory 15,900 12,800 3,100 (I) Other current assets 12,300 9,000 3,300 (I) Long-term assets: Land 482,000 0 482,000 (I) Buildings 980,000 0 980,000 (I) Equipment 63,300 63,300 Less: Accumulated depreciation (75,050) (25,450) 49,600 (I) Total assets $2,155,927 $238,790 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 13,800 $ 9,600 4,200 (I) Interest payable 890 890 Income tax payable 57,600 38,000 19,600 (I) Long-term liabilities: Notes payable 549,267 31,400 517,867 (I) Stockholders' equity: Common stock 114,000 17,000 97,000 (I) Paid-in capital 1,276,000 0 1,276,000 (I) Retained earnings 233,670 141,900 91,770 (I) Treasury stock (89,300) 0 (89,300) (I) Total liabilities and stockholders' equity $2,155,927 $238,790
As you can tell from the financial statements, 2014 was an especially busy year. Tony and Suzie were able to use the $1.36 million received from the issuance of 97,000 shares of stock and 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.
6. value: 10.00 points Required information
Required: 1.
Calculate the following risk ratios for 2014. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.)
Receivable turnover ratio times Average collection period days Inventory turnover ratio times Average days in inventory days Current ratio to 1 Acid-test ratio to 1 Debt to equity ratio % Times interest earned ratio times
References WorksheetDifficulty: Hard Check my work 7. value: 10.00 points Required information
2. Calculate the following profitability ratios for 2014. (Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.)
Gross profit ratio (on the MU watches) % Return on assets % Profit margin % Asset turnover times Return on equity %
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