The 2024 income statement of Adrian Express reports sales of $21,110,000, cost of goods sold of $12,700,000, and net income of $2,060,000. 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 ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Gross profit ratio Return on assets 45% 25% 15% Profit margin Asset turnover Return on equity 2.5 Ratios 35% times Required 1 Required 2 Calculate the five ratios listed above for Adrian Express. Note: Round your answers to 1 decimal place. Complete this question by entering your answers in the tabs below. Required: 1. Calculate the five ratios listed above for Adrian Express. 2. Do you think the company is more profitable or less profitable than the industry average? %6 2824 96 times %6 $ 880,000 1,825,000 2,315,000 5,080,000 $ 10,100,000 < Required 1 $ 2,118,000 2,562,000 2,125,008 3,295,000 $ 10,100,000 2023 $950,000 1,235,000 1,725.000 4,430,000 $ 8,340,000 $ 1,868,000 2,688,000 2,035,000 1,829,000 $ 8,340,000 Required 2 >
The 2024 income statement of Adrian Express reports sales of $21,110,000, cost of goods sold of $12,700,000, and net income of $2,060,000. 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 ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Gross profit ratio Return on assets 45% 25% 15% Profit margin Asset turnover Return on equity 2.5 Ratios 35% times Required 1 Required 2 Calculate the five ratios listed above for Adrian Express. Note: Round your answers to 1 decimal place. Complete this question by entering your answers in the tabs below. Required: 1. Calculate the five ratios listed above for Adrian Express. 2. Do you think the company is more profitable or less profitable than the industry average? %6 2824 96 times %6 $ 880,000 1,825,000 2,315,000 5,080,000 $ 10,100,000 < Required 1 $ 2,118,000 2,562,000 2,125,008 3,295,000 $ 10,100,000 2023 $950,000 1,235,000 1,725.000 4,430,000 $ 8,340,000 $ 1,868,000 2,688,000 2,035,000 1,829,000 $ 8,340,000 Required 2 >
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...
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Transcribed Image Text:The 2024 income statement of Adrian Express reports sales of $21,110,000, cost of goods sold of $12,700,000, and net income of
$2,060,000. 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 ratios are as follows:
Gross profit ratio
Return on assets
Profit margin
Asset turnover
Return on equity
ADRIAN EXPRESS
Balance Sheets
December 31, 2024 and 2023
Gross profit ratio
Return on assets
45%
25%
15%
Profit margin
Asset turnover
Return on equity
2.5
Ratios
35%
times
Required 1 Required 2
Calculate the five ratios listed above for Adrian Express.
Note: Round your answers to 1 decimal place.
Complete this question by entering your answers in the tabs below.
Required:
1. Calculate the five ratios listed above for Adrian Express.
2. Do you think the company is more profitable or less profitable than the industry average?
%6
2824
96
times
%6
$ 880,000
1,825,000
2,315,000
5,080,000
$ 10,100,000
< Required 1
$ 2,118,000
2,562,000
2,125,008
3,295,000
$ 10,100,000
2023
$950,000
1,235,000
1,725.000
4,430,000
$ 8,340,000
$ 1,868,000
2,688,000
2,035,000
1,829,000
$ 8,340,000
Required 2 >
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