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The 2021 income statement of Adrian Express reports sales of $18,612,000, cost of goods sold of $11,696,000, and net income of $1,680,000. Balance sheet
The 2021 income statement of Adrian Express reports sales of $18,612,000, 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 Assets Current assets: Balance Sheets December 31, 2021 and 2020 2021 2020 Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities. Common stock Retained earnings Total liabilities and stockholders' equity $ 680,000 $840,000 1,560,000 1,080,000 1,960,000 1,480,000 4,880,000 4,320,000 $9,080,000 $7,720,000 $1,940,000 $1,740,000 2,380,000 2,480,000 1,920,000 1,920,000 2,840,000 1,580,000 $9,080,000 $7,720,000 Industry averages for the following four risk ratios are as follows: ces Average collection period 25 days Average days in inventory Current ratio 60 days 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.) Risk Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio days days 1.8 to 1 %
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