Income statement and balance sheet data for Great Adventures, Inc., are provided below. $ 193,410 400 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $39,900 Operating expenses 68,480 Depreciation expense 18,650 Interest expense 10,276 Income tax expense 15,900 Total expenses Net income 153,206 $ 40,604 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ 300, 210 50, 120 9,800 1,180 $ 64,780 0 0 5,620 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 780,000 870,000 90,840 (28,050) $2,074,100 0 0 54,000 (8,700) $115,700 $ $ Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 23,600 1,450 15,900 29,400 76,301 733,955 3,360 890 14,280 0 0 32,800 148,000 1,158,800 60,694 (174,000) $2,074,100 29,520 0 34,850 0 $115,700 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. 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.) a. times b. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) Average collection period. Inventory turnover ratio. Average days in inventory. days times c. d. days 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. 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.) a. times b. days C. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) Average collection period. Inventory turnover ratio. Average days in inventory. Current ratio. times d. days e. to 1 f. to 1 Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio. g. % h. Times interest earned ratio. times Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 148,000 1,158,800 60,694 (174,000) $2,074,100 29,520 0 34,850 0 $115,700 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. 2. Calculate the following profitability ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) a. Gross profit ratio. (Hint: Use net sales revenues) % b. Return on assets. % C. % d. Profit margin. (Hint: Use net sales revenues) Asset turnover. (Hint: Use net sales revenues) Return on equity. . e times e. %
