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The 2018 income statement of Adrian Express reports sales of S18,612,000, cost of goods sold of $11,696,000, and net income of $1,680,000. Balance sheet information
The 2018 income statement of Adrian Express reports sales of S18,612,000, cost of goods sold of $11,696,000, and net income of $1,680,000. Balance sheet information is provided in the following table ADRIAN EXPRESS Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets Cash Accounts receivable Inventory 5 680,000 1.560,000 1.960,000 4,880,000 840,000 1.080,000 1.480,000 4,320,000 Long-term assets Total assets 5 9,080,000 $7.720,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stockk Retained earnings 5 1,940,000 1,740,000 2.380.000 2.480,000 1.920,000 2.840,000 1,580,000 1.920,000 Total liabilities and stockholders' equity 59,080,000 $7.720,000 Industry averages for the following four risk ratios are as follows Average collection period Average days in inventory Current ratio Debt to equity ratico 25 days 60 days 2 to 1 50% Required: 1. 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.) Risk Ratios Average collection period Average days in inventory Current ratio Debt to equity ratico days days to 1
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