The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. Assets Current assets: Cash ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 $ 700,000 $ 860,000 Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 1,600,000 2,000,000 4,900,000 1,100,000 1,500,000 4,340,000 $9,200,000 $7,800,000 $1,920,000 $1,760,000 2,400,000 2,500,000 1,900,000 1,900,000 2,980,000 1,640,000 $9,200,000 $7,800,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover 45% 25% 15% 2.5 times 35% Return on equity Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Profitability Ratios 36.5% Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 21.7% 8.8 % 2.3 times 96.0%
The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. Assets Current assets: Cash ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 $ 700,000 $ 860,000 Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 1,600,000 2,000,000 4,900,000 1,100,000 1,500,000 4,340,000 $9,200,000 $7,800,000 $1,920,000 $1,760,000 2,400,000 2,500,000 1,900,000 1,900,000 2,980,000 1,640,000 $9,200,000 $7,800,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover 45% 25% 15% 2.5 times 35% Return on equity Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Profitability Ratios 36.5% Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 21.7% 8.8 % 2.3 times 96.0%
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 19SP
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