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The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $12.8 million, and net income of $1.4 million.
The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $12.8 million, and net income of $1.4 million. Balance sheet information is provided in the following table. All amounts are in thousands. |
ADRIAN EXPRESS Balance Sheet December 31, 2012 and 2011 | ||||
($ in 000s) | 2012 | 2011 | ||
Assets | ||||
Current assets: | ||||
Cash | $ | 440 | $ | 600 |
Accounts receivable | 1,720 | 1,320 | ||
Inventory | 1,900 | 1,500 | ||
Long-term assets | 3,800 | 4,380 | ||
Total assets | $ | 7,860 | $ | 7,800 |
Liabilities and Stockholders' Equity | ||||
Current liabilities | $ | 2,160 | $ | 1,800 |
Long-term liabilities | 1,900 | 2,000 | ||
Common stock | 2,000 | 2,000 | ||
Retained earnings | 1,800 | 2,000 | ||
Total liabilities and stockholders' equity | $ | 7,860 | $ | 7,800 |
Industry averages for the following four risk ratios are as follows: |
Gross profit ratio | 25 | % |
Return on assets | 22 | % |
Profit margin | 13 | % |
Asset turnover | 2 | times |
Return on equity | 31 | % |
Required: |
1. | Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place. Omit the % sign in your response.) |
Profit margin | % |
Return on equity | % |
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