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The 2015 income statement of Adrian Express reports sales of $14,097,000, cost of goods sold of $8,154,000, and net income of $1,540,000. Balance sheet information
The 2015 income statement of Adrian Express reports sales of $14,097,000, cost of goods sold of $8,154,000, and net income of $1,540,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current assets: 540,000 700,000 Cash 1,280,000 Accounts receivable 940,000 Inventory 1,680,000 1,340,000 4,740,000 4,180,000 Long-term assets Total assets $8,240,000 $7,160,000 Liabilities and Stockholders' Equity Current liabilities 1,960,000 $1,600,000 Long-term liabilities 2,240,000 2,340,000 Common stock 1,880,000 1,880,000 Retained earnings 2,160,000 1,340,000 Total liabilities and stockholders' equity $8,240,000 $7,160,000 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 2015. (Use 365 days in a year. Round your answers to 1 decimal place.) Risk Ratios days Average collection period days Average days in inventory to 1 Current ratio Debt to equity ratio
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