FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ashvinbhai 

Required Information
RWP12-1 (Static) Great Adventures Continuing Case
[The following Information applies to the questions displayed below.]
Income statement and balance sheet data for Great Adventures, Incorporated, are provided below.
Net sales revenues
Interest revenue
Expenses:
GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
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
GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
2025
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
$ 180,568
47,600
7,000
$ 64,500
0
900
4,500
500,000
800,000
62,000
(25,250)
$ 1,572,818
40,000
(8,000)
$ 101,000
$ 2,800
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
$ 20,800
750
14,500
21,000
750
14,000
0
48,014
475,869
30,000
120,000
20,000
904,000
57,885
33,450
(90,000)
Total liabilities and stockholders' equity
$ 1,572,818
$ 101,000
As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzle 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.
RWP12-1 (Static) Great Adventures Continuing Case Part 2
2. Calculate the following profitability ratios for 2025. (Use 365 days in a year. Round your Intermediate calculations and final
answers to 1 decimal place.)
a. Gross profit ratio. (Hint: Use net sales revenues.)
b. Return on assets.
%6
%
c. Profit margin. (Hint: Use net sales revenues.)
%
d. Asset turnover. (Hint: Use net sales revenues.)
times
e. Return on equity.
%
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Transcribed Image Text:Required Information RWP12-1 (Static) Great Adventures Continuing Case [The following Information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. Net sales revenues Interest revenue Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 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 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 2025 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 $ 180,568 47,600 7,000 $ 64,500 0 900 4,500 500,000 800,000 62,000 (25,250) $ 1,572,818 40,000 (8,000) $ 101,000 $ 2,800 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 $ 20,800 750 14,500 21,000 750 14,000 0 48,014 475,869 30,000 120,000 20,000 904,000 57,885 33,450 (90,000) Total liabilities and stockholders' equity $ 1,572,818 $ 101,000 As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzle 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. RWP12-1 (Static) Great Adventures Continuing Case Part 2 2. Calculate the following profitability ratios for 2025. (Use 365 days in a year. Round your Intermediate calculations and final answers to 1 decimal place.) a. Gross profit ratio. (Hint: Use net sales revenues.) b. Return on assets. %6 % c. Profit margin. (Hint: Use net sales revenues.) % d. Asset turnover. (Hint: Use net sales revenues.) times e. Return on equity. %
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