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The 2021 income statement of Adrian Express reports sales of $15.642.000. cost of goods sold of $9,351.500, and net income of $1,590.000. Balance sheet information
The 2021 income statement of Adrian Express reports sales of $15.642.000. cost of goods sold of $9,351.500, and net income of $1,590.000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash 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 $ 599, eee 1,380,000 1,780,000 4,790,000 $8,540,000 $ 750,00 999, eee 1,390,000 4,230,000 $7,360,00 $2,010,eee $1,650, eee 2,290,00 2, 390, ee 1,980,000 1,989, 2,260,00 1,340,00 $8,540,00 $ 7,360,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio 25 days 60 days 2 to 1 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 declmal place.) Risk Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio days days to 1 2. Do you think the company is more risky or less risky than the industry average? O More risky O Less risky
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