[The following information applies to the questions displayed below.]

Income statement and balance sheet data for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing, TEAM)	$549,000
Sales revenue (MU watches)	124,000
Total revenues		$673,000
Expenses:
Cost of goods sold (MU watches)	73,000
Operating expenses	304,576
Depreciation expense	53,000
Interest expense	30,024
Income tax expense	58,800
Total expenses		519,400
Net income		$153,600

GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019
		2020			2019	Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$	295,570		$	141,000	154,570	(I)
Accounts receivable		49,500			38,000	11,500	(I)
Inventory		17,450			14,300	3,150	(I)
Other current assets		13,450			11,300	2,150	(I)
Long-term assets:
Land		550,000			0	550,000	(I)
Buildings		1,000,000			0	1,000,000	(I)
Equipment		68,000			68,000
Less: Accumulated depreciation		(79,000)			(26,000)	53,000	(I)
Total assets	$	1,914,970		$	246,600
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$12,450			$9,300	3,150	(I)
Interest payable		780			780
Income tax payable		58,800			39,500	19,300	(I)
Long-term liabilities:
Notes payable		523,820			31,500	492,320	(I)
Stockholders' equity:
Common stock		120,000			20,000	100,000	(I)
Paid-in capital		1,105,000			0	1,105,000	(I)
Retained earnings		184,120			145,520	38,600	(I)
Treasury stock		(90,000)			0	(90,000)	(I)
Total liabilities and stockholders' equity	$	1,914,970		$	246,600

As you can tell from the financial statements, 2020 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 shares of stock to hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson. Assume all sales and services are on credit.

9.

value: 10.00 points

Required information

Required:

1. Calculate the following risk ratios for 2020. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)