Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income
Question:
Income statement and balance sheet data for Great Adventures, Inc., are provided below. |
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2014 | ||
Revenues: | ||
Service revenue (clinic, racing, TEAM) | 576,000 | |
Sales revenue (MU watches) | 131,000 | |
Total revenues | $707,000 | |
Expenses: | ||
Cost of goods sold (MU watches) | 69,100 | |
Operating expenses | 293,276 | |
Depreciation expense | 49,900 | |
Interest expense | 23,760 | |
Income tax expense | 56,000 | |
Total expenses | 492,036 | |
Net income | $214,964 | |
GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 | ||||
2014 | 2013 | Increase (I) or Decrease (D) | ||
Assets | ||||
Current assets: | ||||
Cash | $ 325,393 | $145,580 | 179,813 | (I) |
Accounts receivable | 44,200 | 34,900 | 9,300 | (I) |
Inventory | 15,100 | 13,200 | 1,900 | (I) |
Other current assets | 12,100 | 10,500 | 1,600 | (I) |
Long-term assets: | ||||
Land | 489,000 | 0 | 489,000 | (I) |
Buildings | 990,000 | 0 | 990,000 | (I) |
Equipment | 63,200 | 63,200 | ||
Less: Accumulated depreciation | (75,850) | (25,950) | 49,900 | (I) |
Total assets | $1,863,143 | $241,430 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ 12,300 | $ 10,700 | 1,600 | (I) |
Interest payable | 830 | 830 | ||
Income tax payable | 57,300 | 38,400 | 18,900 | (I) |
Long-term liabilities: | ||||
Notes payable | 410,949 | 31,800 | 379,149 | (I) |
Stockholders' equity: | ||||
Common stock | 118,000 | 19,000 | 99,000 | (I) |
Paid-in capital | 1,093,300 | 0 | 1,093,300 | (I) |
Retained earnings | 243,264 | 140,700 | 102,564 | (I) |
Treasury stock | (72,800) | 0 | (72,800) | (I) |
Total liabilities and stockholders' equity | $1,863,143 | $241,430 | ||
As you can tell from the financial statements, 2014 was an especially busy year. Tony and Suzie were able to use the $1.19 million received from the issuance of 99,000 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. |
6.
value:
10.00 points
Required: | |
1. | Calculate the following risk ratios for 2014. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.) |
Receivable turnover ratio | times | |
Average collection period | days | |
Inventory turnover ratio | times | |
Average days in inventory | days | |
Current ratio | to 1 | |
Acid-test ratio | to 1 | |
Debt to equity ratio | % | |
Times interest earned ratio | times | |
check my workreferences
7.
value:
10.00 points
2. | Calculate the following profitability ratios for 2014. (Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.) |
Gross profit ratio (on the MU watches) | % | |
Return on assets | % | |
Profit margin | % | |
Asset turnover | times | |
Return on equity | % | |
Financial Accounting
ISBN: 978-0077862268
2nd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann