1 Part 1 of 2 eBook [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Net sales revenues Interest revenue Expenses: $ 164,150 120 References Cost of goods sold 38,500 Operating expenses 51,400 Depreciation expense 17,250 Interest expense 6,785 Income tax expense 14,500 Total expenses 128,435 Net income $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 Assets Current assets: Cash Accounts receivable Inventory Other current assets 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 2025 2024 $ 180,568 64,500 47,600 7,000 0 0 900 4,500 500,000 0 800,000 0 62,000 (25,250) 40,000 (8,000) $ $ 1,572,818 101,000 $ 20,800 $2,800 750 750 14,500 14,000 21,000 0 48,014 0 475,869 30,000 120,000 20,000 904,000 0 57,885 33,450 (90,000) 0 $ $ 1,572,818 101,000 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. (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. c. Inventory turnover ratio. d. Average days in inventory. e. Current ratio. f. Acid-test ratio. (Hint: There are no current investments.) g. Debt to equity ratio. h. Times interest earned ratio. times days times days % times

1 Part 1 of 2 eBook [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Net sales revenues Interest revenue Expenses: $ 164,150 120 References Cost of goods sold 38,500 Operating expenses 51,400 Depreciation expense 17,250 Interest expense 6,785 Income tax expense 14,500 Total expenses 128,435 Net income $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 Assets Current assets: Cash Accounts receivable Inventory Other current assets 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 2025 2024 $ 180,568 64,500 47,600 7,000 0 0 900 4,500 500,000 0 800,000 0 62,000 (25,250) 40,000 (8,000) $ $ 1,572,818 101,000 $ 20,800 $2,800 750 750 14,500 14,000 21,000 0 48,014 0 475,869 30,000 120,000 20,000 904,000 0 57,885 33,450 (90,000) 0 $ $ 1,572,818 101,000 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. (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. c. Inventory turnover ratio. d. Average days in inventory. e. Current ratio. f. Acid-test ratio. (Hint: There are no current investments.) g. Debt to equity ratio. h. Times interest earned ratio. times days times days % times

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.14P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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