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

As you can tell from the financial statements, 2025 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.

Required:
1. Calculate the following risk ratios for 2025.
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 2025.
a. Gross profit ratio.
b. Return on assets.
c. Profit margin.
d. Asset turnover.
e. Return on equity.

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GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2025 Net sales revenues Interest revenue Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $38,500 51,400 17,250 6,785 14,500 $164,150 120 128,435 $ 35,835