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The 2018 income statement of Adrian Express reports sales of $12,915,000, cost of goods sold of $7,250,000, and net income of $1,500,000. Balance sheet information
The 2018 income statement of Adrian Express reports sales of $12,915,000, cost of goods sold of $7,250,000, and net income of $1,500,000. Balance sheet information is provided in the following table.
ADRIAN EXPRESS Balance Sheets December 31, 2018 and 2017 | ||||
2018 | 2017 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 500,000 | $ | 660,000 |
Accounts receivable | 1,200,000 | 900,000 | ||
Inventory | 1,600,000 | 1,300,000 | ||
Long-term assets | 4,700,000 | 4,140,000 | ||
Total assets | $ | 8,000,000 | $ | 7,000,000 |
Liabilities and Stockholders' Equity | ||||
Current liabilities | $ | 1,920,000 | $ | 1,560,000 |
Long-term liabilities | 2,290,000 | 2,300,000 | ||
Common stock | 1,800,000 | 1,800,000 | ||
Retained earnings | 1,990,000 | 1,340,000 | ||
Total liabilities and stockholders' equity | $ | 8,000,000 | $ | 7,000,000 |
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:Calculate the four risk ratios listed above for Adrian Express in 2018. (Use 365 days in a year. Round your answers to 1 decimal place.)
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