The 2024 income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets Assets Current assets: Cash Accounts receivable Inventory Long-term assets December 31, 2024 and 2023 2024 2023 $ 690,000 1,580,000 1,980,000 4,890,000 $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,760,000 $ 1,750,000 2,490,000 1,910,000 1,610,000 Total assets $ 9,140,000 Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 25 days 60 days 2 to 1 35% $ 9,140,000 $ 7,760,000 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. 2. Do you think the company is more or less efficient at managing its current assets than the industry average? 3. Do you think the company is more risky or less risky than the industry average? www < Prev 4 of 7 Next >