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The 2 0 2 4 income statement of Adrian Express reports sales of $ 1 6 , 6 0 5 , 0 0 0 ,

The 2024 income statement of Adrian Express reports sales of $16,605,000, cost of goods sold of $10,106,000, and net income of $1,620,000. Balance sheet information is provided in the following table.
ADRIAN EXPRESS
Balance Sheets
December 31,2024 and 2023
20242023
Assets
Current assets:
Cash $620,000 $780,000
Accounts receivable 1,440,0001,020,000
Inventory 1,840,0001,420,000
Long-term assets 4,820,0004,260,000
Total assets $8,720,000 $7,480,000
Liabilities and Stockholders' Equity
Current liabilities $2,000,000 $1,680,000
Long-term liabilities 2,320,0002,420,000
Common stock 1,980,0001,980,000
Retained earnings 2,420,0001,400,000
Total liabilities and stockholders' equity $8,720,000 $7,480,000
Industry averages for the following four risk ratios are as follows:
Average collection period 25 days
Average days in inventory 60 days
Current ratio 2 to 1
Debt to equity ratio 50%
Required:
1. Calculate the four risk ratios listed above for Adrian Express in 2024.
2. Do you think the company is more risky or less risky than the industry average?

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