Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATEDIncome StatementFor the Year Ended December 31, 2025Net sales revenues $ 189,230Interest revenue 360Expenses: Cost of goods sold$ 39,700 Operating expenses66,040 Depreciation expense18,450 Interest expense9,777 Income tax expense15,700 Total expenses 149,667Net income $ 39,923 GREAT ADVENTURES, INCORPORATEDBalance SheetsDecember 31, 2025 and 2024 20252024Assets Current assets: Cash$ 283,118$ 64,740Accounts receivable49,7600Inventory9,4000Other current assets1,1405,460Long-term assets: Land740,0000Buildings860,0000Equipment86,72052,000Accumulated depreciation(27,650)(8,600)Total assets$ 2,002,488$ 113,600Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$ 23,200$ 3,280Interest payable1,350870Income tax payable15,70014,240Other current liabilities28,2000Notes payable (current)72,2590Notes payable (long-term)697,08632,400Stockholders’ equity: Common stock144,00028,160Paid-in capital1,122,4000Retained earnings60,29334,650Treasury stock(162,000)0Total liabilities and stockholders’ equity$ 2,002,488$ 113,600As 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. 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.) 2. Calculate the following profitability ratios for 2025. (Use 365 days in a year. Round your intermediate calculations and finalanswers to 1 decimal place.)a. Gross profit ratio. (Hint: Use net sales revenues.)b. Return on assets.c. Profit margin. (Hint: Use net sales revenues.)d. Asset turnover. (Hint: Use net sales revenues.)e. Return on equity.%%%times%

These ratios provide insights into the profitability and efficiency of Great Adventures,…

Answered: 2. Calculate the following…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5MC

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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		$ 189,230
Interest revenue		360
Expenses:
Cost of goods sold	$ 39,700
Operating expenses	66,040
Depreciation expense	18,450
Interest expense	9,777
Income tax expense	15,700
Total expenses		149,667
Net income		$ 39,923

	2025	2024
GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
Assets
Current assets:
Cash	$ 283,118	$ 64,740
Accounts receivable	49,760	0
Inventory	9,400	0
Other current assets	1,140	5,460
Long-term assets:
Land	740,000	0
Buildings	860,000	0
Equipment	86,720	52,000
Accumulated depreciation	(27,650)	(8,600)
Total assets	$ 2,002,488	$ 113,600
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 23,200	$ 3,280
Interest payable	1,350	870
Income tax payable	15,700	14,240
Other current liabilities	28,200	0
Notes payable (current)	72,259	0
Notes payable (long-term)	697,086	32,400
Stockholders’ equity:
Common stock	144,000	28,160
Paid-in capital	1,122,400	0
Retained earnings	60,293	34,650
Treasury stock	(162,000)	0
Total liabilities and stockholders’ equity	$ 2,002,488	$ 113,600

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.

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.)

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