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The 2021 income statement of Adrian Express reports sales of $12,915,000, cost of goods sold of $7,250,000, and net income of $1,500,000. Balance sheet information
The 2021 income statement of Adrian Express reports sales of $12,915,000, cost of goods sold of $7,250,000, and net income of $1,500,000. 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 $ 500,000 1,200,000 1,600,000 4,700,000 $8,000,000 $ 660,000 900,000 1,300,000 4,140,000 $7,000,000 $1,920,000 2,290,000 1,800,000 1,990,000 $8,000,000 $1,560,000 2,300,000 1,800,000 1,340,000 $7,000,000 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 decimal place.) Risk Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio days days to 1 %
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