Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC....
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Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold. Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Other current assets. Long-term assets: Land Buildings Equipment Accumulated depreciation. $38,900 56,280 17,650 7,782 14,900 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 $172,510 200 135,512 $ 37,198 2022 $ 214,752 48,320 7,800 980 580,000 820,000 70,240 (26,050) 2021 $ 64,580 0 0 4,820 0 0 44,000 (8,200) Long-term assets: Land Buildings. Equipment Accumulated depreciation Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Interest payable. Income tax payable. Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity. 580,000 820,000 70,240 (26,050) $1,716,042 $ 21,600 950 14,900 23,400 56,096 549,608 128,000 976,800 58,688 (114,000) $1,716,042 0 0 44,000 (8,200) $105, 200 $ 2,960 790 14,080 0 0 30,800 22,720 0 33,850 0 $105,200 As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. 4 Required: 1. Calculate the following risk ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) b. Average collection period. Inventory turnover ratio Average days in inventory. Current ratio Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio. Times interest earned ratio C. d. e g h times days times days to 1 to 1 % times Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold. Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Other current assets. Long-term assets: Land Buildings Equipment Accumulated depreciation. $38,900 56,280 17,650 7,782 14,900 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 $172,510 200 135,512 $ 37,198 2022 $ 214,752 48,320 7,800 980 580,000 820,000 70,240 (26,050) 2021 $ 64,580 0 0 4,820 0 0 44,000 (8,200) Long-term assets: Land Buildings. Equipment Accumulated depreciation Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Interest payable. Income tax payable. Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity. 580,000 820,000 70,240 (26,050) $1,716,042 $ 21,600 950 14,900 23,400 56,096 549,608 128,000 976,800 58,688 (114,000) $1,716,042 0 0 44,000 (8,200) $105, 200 $ 2,960 790 14,080 0 0 30,800 22,720 0 33,850 0 $105,200 As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. 4 Required: 1. Calculate the following risk ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) b. Average collection period. Inventory turnover ratio Average days in inventory. Current ratio Acid-test ratio. (Hint: There are no current investments) Debt to equity ratio. Times interest earned ratio C. d. e g h times days times days to 1 to 1 % times
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To calculate the risk ratios for Great Adventures Inc for the year 2022 well use the information provided in the income statement and balance sheet a ... View the full answer
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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