RWP121 (Algo) Great Adventures Continuing Case

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[The following information applies to the questions displayed below.]

Income statement and balance sheet data for Great Adventures, Incorporated, are provided below.

GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
Net sales revenues		$ 189,230
Interest revenue		360
Expenses:
Cost of goods sold	$ 39,700
Operating expenses	66,040
Depreciation expense	18,450
Interest expense	9,777
Income tax expense	15,700
Total expenses		149,667
Net income		$ 39,923

GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
	2025	2024
Assets
Current assets:
Cash	$ 283,118	$ 64,740
Accounts receivable	49,760	0
Inventory	9,400	0
Other current assets	1,140	5,460
Long-term assets:
Land	740,000	0
Buildings	860,000	0
Equipment	86,720	52,000
Accumulated depreciation	(27,650)	(8,600)
Total assets	$ 2,002,488	$ 113,600
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 23,200	$ 3,280
Interest payable	1,350	870
Income tax payable	15,700	14,240
Other current liabilities	28,200	0
Notes payable (current)	72,259	0
Notes payable (long-term)	697,086	32,400
Stockholders equity:
Common stock	144,000	28,160
Paid-in capital	1,122,400	0
Retained earnings	60,293	34,650
Treasury stock	(162,000)	0
Total liabilities and stockholders equity	$ 2,002,488	$ 113,600

As you can tell from the financial statements, 2025 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.

RWP121 (Algo) Great Adventures Continuing Case Part 1

Required:

1. Calculate the following risk ratios for 2025. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.)

a. receivables turnover ration. (Hint: Use net sales revenues for net credit sales.) blank times

b. average collection period. blank days.

c. inventory turnover ratio. times

d. average days in inventory. days

e. current ratio.

f. Acid-test ratio. (Hint: There are no current investments.)

g. Debt to equity ratio. blank %

h. Times interest earned ratio. blank times

RWP121 (Algo) Great Adventures Continuing Case

Skip to question

[The following information applies to the questions displayed below.]

Income statement and balance sheet data for Great Adventures, Incorporated, are provided below.

GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
Net sales revenues		$ 189,230
Interest revenue		360
Expenses:
Cost of goods sold	$ 39,700
Operating expenses	66,040
Depreciation expense	18,450
Interest expense	9,777
Income tax expense	15,700
Total expenses		149,667
Net income		$ 39,923

GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
	2025	2024
Assets
Current assets:
Cash	$ 283,118	$ 64,740
Accounts receivable	49,760	0
Inventory	9,400	0
Other current assets	1,140	5,460
Long-term assets:
Land	740,000	0
Buildings	860,000	0
Equipment	86,720	52,000
Accumulated depreciation	(27,650)	(8,600)
Total assets	$ 2,002,488	$ 113,600
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 23,200	$ 3,280
Interest payable	1,350	870
Income tax payable	15,700	14,240
Other current liabilities	28,200	0
Notes payable (current)	72,259	0
Notes payable (long-term)	697,086	32,400
Stockholders equity:
Common stock	144,000	28,160
Paid-in capital	1,122,400	0
Retained earnings	60,293	34,650
Treasury stock	(162,000)	0
Total liabilities and stockholders equity	$ 2,002,488	$ 113,600

As you can tell from the financial statements, 2025 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.

RWP121 (Algo) Great Adventures Continuing Case Part 2

ncome statement and balance sheet data for Great Adventures, Incorporated, are provided below.

GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
Net sales revenues		$ 189,230
Interest revenue		360
Expenses:
Cost of goods sold	$ 39,700
Operating expenses	66,040
Depreciation expense	18,450
Interest expense	9,777
Income tax expense	15,700
Total expenses		149,667
Net income		$ 39,923

GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
	2025	2024
Assets
Current assets:
Cash	$ 283,118	$ 64,740
Accounts receivable	49,760	0
Inventory	9,400	0
Other current assets	1,140	5,460
Long-term assets:
Land	740,000	0
Buildings	860,000	0
Equipment	86,720	52,000
Accumulated depreciation	(27,650)	(8,600)
Total assets	$ 2,002,488	$ 113,600
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 23,200	$ 3,280
Interest payable	1,350	870
Income tax payable	15,700	14,240
Other current liabilities	28,200	0
Notes payable (current)	72,259	0
Notes payable (long-term)	697,086	32,400
Stockholders equity:
Common stock	144,000	28,160
Paid-in capital	1,122,400	0
Retained earnings	60,293	34,650
Treasury stock	(162,000)	0
Total liabilities and stockholders equity	$ 2,002,488	$ 113,600

As you can tell from the financial statements, 2025 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 2025. (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.) blank percent

b. Return on assets blank percent

c. proft margin. (hint use net sales revenues) --blank percent

d. Asset turnover. (Hint: use net sales revenues). blank times

e. return on equity. percent