Question
The 2021 income statement of Adrian Express reports sales of $21,910,000, cost of goods sold of $12,900,000, and net income of $2,220,000. Balance sheet information
The 2021 income statement of Adrian Express reports sales of $21,910,000, cost of goods sold of $12,900,000, and net income of $2,220,000. Balance sheet information is provided in the following table.
ADRIAN EXPRESS
Balance Sheets
December 31, 2021 and 202020212020AssetsCurrent assets:Cash$960,000$990,000Accounts receivable1,925,0001,295,000Inventory2,455,0001,825,000Long-term assets5,160,0004,470,000Total assets$10,500,000$8,580,000Liabilities and Stockholders' EquityCurrent liabilities$2,206,000$1,916,000Long-term liabilities2,634,0002,656,000Common stock2,225,0002,095,000Retained earnings3,435,0001,913,000Total liabilities and stockholders' equity$10,500,000$8,580,000
Industry averages for the following profitability ratios are as follows:
Gross profit ratio45%
Return on assets25%Profit margin15%Asset turnover14.5timesReturn on equity35%
Required:
1.Calculate the five profitability ratios listed above for Adrian Express.(Round your answers to 1 decimal place.)
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