sThe 2021 income statement of Adrian Express reports sales of $22,110,000, cost of goods sold of $12,950,000, and net income of$2,260,000. Balance sheet information is provided in the following table.AssetsCurrent assets:CashAccounts receivableInventoryLong-term assetsTotal assetsLiabilities and Stockholders' EquityCurrent liabilitiesLong-term liabilitiesCommon stockRetained earningsTotal liabilities and stockholders' equityGross profit ratioReturn on assetsADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020Profit marginAsset turnoverReturn on equityProfitability RatiosIndustry averages for the following profitability ratios are as follows:Gross profit ratioMes%$45%25%15%15.5 times.35%20212020980,0001,950,0002,490,0005,180,000 4,480,000$10,600,000$8,640,000$1,000,0001,310,0001,850,000Required:1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)$ 2,228,000 $1,928,0002,652,000 2,668,0002,250,000 2,110,0003,470,000 1,934,000$10,600,000 $8,640,000

RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…

es The 2021 income statement of Adrian Express reports sales of $22,110,000, cost of goods sold of $12,950,000, and net income of $2,260,000. 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 liabilities. Common stock Retained earnings Total liabilities and stockholders' equity ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 Gross profit ratio Return on assets Profit margin Asset turnover Return on equity Profitability Ratios Gross profit ratio Industry averages for the following profitability ratios are as follows: 45% 25% 15% 15.5 times 35% % 2021 $ 980,000 1,950,000 2,490,000 5,180,000 $10,600,000 2020 Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) $1,000,000 1,310,000 1,850,000 4,480,000 $8,640,000 $ 2,228,000 $1,928,000 2,652,000 2,668,000 2,250,000 2,110,000 3,470,000 1,934,000 $10,600,000 $8,640,000

es The 2021 income statement of Adrian Express reports sales of $22,110,000, cost of goods sold of $12,950,000, and net income of $2,260,000. 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 liabilities. Common stock Retained earnings Total liabilities and stockholders' equity ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 Gross profit ratio Return on assets Profit margin Asset turnover Return on equity Profitability Ratios Gross profit ratio Industry averages for the following profitability ratios are as follows: 45% 25% 15% 15.5 times 35% % 2021 $ 980,000 1,950,000 2,490,000 5,180,000 $10,600,000 2020 Required: 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) $1,000,000 1,310,000 1,850,000 4,480,000 $8,640,000 $ 2,228,000 $1,928,000 2,652,000 2,668,000 2,250,000 2,110,000 3,470,000 1,934,000 $10,600,000 $8,640,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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