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. $164, 150 120 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $38,500 Operating expenses 51,400 Depreciation expense 17,250 Interest expense 6,785 Income tax expense 14,500 Total expenses Net income 128,435 $ 35, 835 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ 180,568 47,600 7,000 900 $ 64,500 0 0 4,500 500,000 800,000 62,000 (25,250) $1,572,818 0 0 40,000 (8,000) $101,000 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 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 $ 20,800 750 14,500 21,000 48,014 475, 869 $ 2,800 750 14,000 0 0 30,000 120,000 20,000 904,000 0 57,885 33,450 (90,000) 0 $1,572,818 $101,000 equity 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. times d. days Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) Average collection period. Inventory turnover ratio Average days in inventory. Current ratio. Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio. Times interest earned ratio. e. to 1 f. to 1 g % h times 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. $164, 150 120 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $38,500 Operating expenses 51,400 Depreciation expense 17,250 Interest expense 6,785 Income tax expense 14,500 Total expenses Net income 128,435 $ 35, 835 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ 180,568 47,600 7,000 900 $ 64,500 0 0 4,500 500,000 800,000 62,000 (25,250) $1,572,818 0 0 40,000 (8,000) $101,000 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 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' $ 20,800 750 14,500 21,000 48,014 475, 869 $ 2,800 750 14,000 0 0 30,000 120,000 20,000 904,000 0 57,885 33,450 (90,000) 0 $1,572,818 $101,000 equity 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 2 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. % b % C. Gross profit ratio. (Hint: Use net sales revenues) Return on assets. Profit margin. (Hint: Use net sales revenues) Asset turnover (Hint: Use net sales revenues) Return on equity % d times e. %
