Question
The 2021 income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. Balance sheet information
The 2021 income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 690,000 $ 850,000 Accounts receivable 1,580,000 1,090,000 Inventory 1,980,000 1,490,000 Long-term assets 4,890,000 4,330,000 Total assets $ 9,140,000 $ 7,760,000 Liabilities and Stockholders' Equity Current liabilities $ 1,930,000 $ 1,750,000 Long-term liabilities 2,390,000 2,490,000 Common stock 1,910,000 1,910,000 Retained earnings 2,910,000 1,610,000 Total liabilities and stockholders' equity $ 9,140,000 $ 7,760,000 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 2021. (Use 365 days in a year. Round your answers to 1 decimal place.)
what is the average of days in collection period? Average days in inventory? what is the Current ratio? what is the debt to equity percentage?
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