Required Information Great Adventures Problem AP12-1 [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, 2822 Net sales revenues Interest revenue Expenses: $281,778 488 $40,300 73,360 19,050 11,274 16,300 168,284 $ 41,966 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2821 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 2822 2021 Assets Current assets: Cash $ 334,394 $ 64,860 Accounts receivable 58,840 8 Inventory 18,600 8 Other current assets 1,260 5,940 Long-term assets: Land 860,000 890,000 Buildings 8 Equipment 99,888 58,000 Accumulated depreciation (28,850) (8,980) Total assets $2,217,324 $119,980 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 24,488 $ 3,528 Interest payable 1,650 938 Income tax payable 16,300 14,360 Other current liabilities 31,800 8 Notes payable (current) 84,383 8 887,695 33,680 Notes payable (long-term) Stockholders equity: Cormon stock 156,000 32,248 Paid-in capital 8 Retained earnings 1,231,608 61,496 (198,808) 35,250 Treasury stock Total liabilities and stockholders' equity $2,217,324 $119,900 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 Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) b. Average collection period. days C. Inventory turnover ratio. times d. Average days in inventory. days e. Current ratio. to 1 f. Acid-test ratio. (Hint: There are no current investments) to 1 % g. Debt to equity ratio. h. Times interest earned ratio. times 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. Profit margin. (Hint: Use net sales revenues) % d. Asset turnover. (Hint: Use net sales revenues) times e. Return on equity. %
