Do not give solution in image Exercise 12-6 (Algo) Evaluate profitability ratios (LO12-4)The 2024 income statement of Adrian Express reports sales of $21,310,000, cost of goods sold of $12,750,000, and net income of$2,100,000. Balance sheet information is provided in the following table.AssetsCurrent assets:CashAccounts receivableInventoryLong-term assetsTotal assetsADRIAN EXPRESSBalance SheetsDecember 31, 2024 and 2023Liabilities and Stockholders' EquityCurrent liabilitiesLong-term liabilitiesCommon stockRetained earningsTotal liabilities and stockholders' equityIndustry averages for the following four risk ratios are as follows:Gross profit ratioReturn on assets.Profit marginAsset turnoverReturn on equity45%25%15%11.535%times20242023$900,000$960,0001,850,000 1,250,0002,350,000 1,750,0005,100,000 4,440,000$10,200,000 $8,400,000$2,140,000 $1,880,0002,580,000 2,620,0002,150,000 2,050,0003,330,000 1,850,000$10,200,000 $8,400,000Complete this question by entering your answers in the tabs below.Required:1. Calculate the five profitability ratios listed above for Adrian Express.2. Do you think the company is more profitable or less profitable than the industry average? 15Complete this question by entering your answers in the tabs below.Required 1 Required 2Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)Profitability RatiosGross profit ratioReturn on assetsProfit marginAsset turnoverReturn on equity%%%times%Required 1Required 2 >

Financial ratios are quantitative indicators that are used to assess the status, health, and…

Exercise 12-6 (Algo) Evaluate profitability ratios (LO12-4) The 2024 income statement of Adrian Express reports sales of $21,310,000, cost of goods sold of $12,750,000, and net income of $2,100,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable. Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities. Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio: 45% 25% Return on assets Profit margin Asset turnover 15% Return on equity 11.5 35% times. 2024 2023 $900,000 $960,000 1,850,000 1,250,000 2,350,000 1,750,000 5,100,000 4,440,000 $10,200,000 $8,400,000 $2,140,000 $1,880,000 2,580,000 2,620,000 2,150,000 2,050,000 3,330,000 1,850,000 $10,200,000 $8,400,000 Required: 1. Calculate the five profitability ratios listed above for Adrian Express. 2. Do you think the company is more profitable or less profitable than the industry average?