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

As you can tell from the financial statements, 2017 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.

1. Calculate the following risk ratios for 2017.
a. Receivables turnover ratio.
b. Average collection period.
c. Inventory turnover ratio.
d. Average days in inventory.
e. Current ratio.
f. Acid-test ratio.
g. Debt to equity ratio.
h. Times interest earned ratio.
2. Calculate the following profitability ratios for 2017.
a. Gross profit ratio (on the MU watches).
b. Return on assets.
c. Profit margin.
d. Asset turnover.
e. Return on equity.
3. Briefly comment on Great Adventures’ risk and profitability in2017.

  • CreatedJuly 15, 2014
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