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

As you can tell from the financial statements, 2014 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 and 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.
Required:
1. Calculate the following risk ratios for 2014.
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 2014.
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 in 2014.

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GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2014 Revenues: Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $543,000 118,000 Total revenues $661,000 Expenses: Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 70,000 304,276 50,000 29,724 57,000 Total expenses 511,000 $150,000 Net income GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 Increase (I or ecrease (D) 2014 2013 Assets Current assets: Cash Accounts receivable Inventory Other current assets $ 322,362 $138,000 $ 184,362 (1) 10,000 (I) 3,000 () 2,000 (I) 45,000 17,000 13,000 35,000 14,000 11,000 Long-term assets: Land Buildings Equipment Less: Accumulated depreciation 500,000 () 1,000,000 (I) 0 65,000 (25,250) $1,887,112 $237,750 500,000 1,000,000 65,000 (75,250) 50,000 () Total assets GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 Increase (1) or ecrease (D) 2014 2013 Liabilities and Stockholders' Equi Current liabilities: Accounts payable Interest payable Income tax payable $ 12,000 750 57,000 9,000 750 38,000 3,000 (I) 19,000 (I) 462,362 (1) Long-term liabilities Notes payable 492,362 30,000 20,000 175,000 140,000 $1,887,112 $237,750 Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock 100,000 (I) 0 1,105,000 (1) 35,000 (I) (75,000) (D) 120,000 1,105,000 Total liabilities and stockholders' equity