Homework Help is Here – Start Your Trial Now!
Business
Accounting
The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. Balance sheet Information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% Average collection period Average days in inventory Current ratio Debt to equity ratio ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio 2024 Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salarles payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the industry average? $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 days days to 1 $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 Rea 1 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to 1 decimal place. Do not round your intermediate calculations. 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,760,000 $1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Den 2 and 3>

The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. Balance sheet Information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% Average collection period Average days in inventory Current ratio Debt to equity ratio ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio 2024 Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salarles payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the industry average? $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 days days to 1 $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 Rea 1 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to 1 decimal place. Do not round your intermediate calculations. 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,760,000 $1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Den 2 and 3>

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
See similar textbooks
icon
Related questions
Question
The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net Income of $1,690,000. Balance sheet Information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios 2024 Average collection period Average days in inventory Current ratio Debt to equity ratio $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current llabilities consist of accounts payable and salaries payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the Industry average? $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 days days to 1 % 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,750,000 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to dec al place. Do not round your intermediate calculations. $ 1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Reg 2 and 3 >
Transcribed Image Text:The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net Income of $1,690,000. Balance sheet Information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios 2024 Average collection period Average days in inventory Current ratio Debt to equity ratio $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current llabilities consist of accounts payable and salaries payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the Industry average? $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 days days to 1 % 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,750,000 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to dec al place. Do not round your intermediate calculations. $ 1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Reg 2 and 3 >
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS