Question
The 2021 income statement of Adrian Express reports sales of $19,910,000, cost of goods sold of $12,400,000, and net income of $1,820,000. Balance sheet information
The 2021 income statement of Adrian Express reports sales of $19,910,000, cost of goods sold of $12,400,000, and net income of $1,820,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 760,000 $ 890,000 Accounts receivable 1,675,000 1,145,000 Inventory 2,105,000 1,575,000 Long-term assets 4,960,000 4,370,000 Total assets $ 9,500,000 $ 7,980,000 Liabilities and Stockholders' Equity Current liabilities $ 1,986,000 $ 1,796,000 Long-term liabilities 2,454,000 2,536,000 Common stock 1,975,000 1,945,000 Retained earnings 3,085,000 1,703,000 Total liabilities and stockholders' equity $ 9,500,000 $ 7,980,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio 45 % Return on assets 25 % Profit margin 15 % Asset turnover 4.5 times Return on equity 35 % Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)
gross profit % ?, return on assets % ?, profit margin % ?, asset turnover ____times?, and return on equity% ? Please and thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started