! Required information (The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below. $170, 420 180 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $38, 800 Operating expenses 55, 060 Depreciation expense 17,550 Interest expense 7,533 Income tax expense 14, 800 Total expenses Net income 133, 743 $ 36,857 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ 206, 206 48, 140 7,600 960 $ 64,560 0 0 4, 740 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 560,000 815, 000 68, 180 (25, 850) $1,680, 236 0 0 43,000 (8,150) $104, 150 21,400 900 14, 800 $ 2,920 780 14,060 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ 206, 206 48, 140 7,600 960 $ 64,560 0 0 4, 740 560,000 815,000 68, 180 (25, 850) $1,680, 236 0 0 43,000 (8,150) $104, 150 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' equity 21,400 900 14,800 22, 800 54, 075 531, 174 $ 2,920 780 14,060 0 0 30, 600 126,000 958, 600 58, 487 (108,000) $1,680, 236 22, 040 0 33, 750 0 $104, 150 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.) Answer is complete but not entirely correct. a. b. C. d. 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. 3.5 X times 104.3 X days 5.1 X times 71.5X days 2.3 to 1 2.2 to 1 62.0 X % 7.9 times e. f. 9. h. 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.) Answer is complete but not entirely correct. 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 77.2% 4.1% 21.6% 0.2 times 3.5 % d. e
