Income statement and balance sheet data for Great Adventures, Incorporated, are provided below.GREAT ADVENTURES, INCORPORATEDIncome StatementFor the Year Ended December 31, 2025Net sales revenuesInterest revenueExpenses:Cost of goods soldOperating expensesDepreciation expenseInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assets:CashAccounts receivableInventoryOther current assetsLong-term assets:LandBuildingsEquipmentAccumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableOther current liabilitiesNotes payable (current)Notes payable (long-term).Stockholders' equity:Common stockPaid-in capitalGREAT ADVENTURES, INCORPORATEDBalance SheetsDecember 31, 2025 and 2024Retained earningsTreasury stockTotal liabilities and stockholders' equity$ 38,80055,86017,5507,53314,800a. 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.$ 170,42018077.2 %%6%6133,743$36,8572025$ 206,20648, 1407,600960560,000815,00068,180(25,850)$ 1,680,236times%6$ 21,40098014,80022,80054,075531,174126,000958,60058,487(108,000)$ 1,688,2362024$ 64,560884,7408843,000(8,150)$ 104,150As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzie were able to use themoney 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.$ 2,92078014,0602. Calculate the following profitability ratios for 2025. (Use 365 days in a year. Round your Intermediate calculations and finalanswers to 1 decimal place.)830,60022,040@33,7508$ 104,150< Prevmum

Profitability ratios are used to analyze the profitability of a business. Gross profit ratio, return…

Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2825 Net sales revenues Interest revenue Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 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 Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2824 Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity $ 38,800 55,060 17,550 7,533 14,800 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. $ 170,420 180 77.2 % 133,743 $ 36,857 2025 times 96 $ 206,206 48,140 7,600 960 560,000 815,000 68,180 (25,850) $ 1,680,236 $ 21,400 980 14,800 22,800 54,075 531,174 126,000 958,600 58,487 (108,000) 1,680,236 2024 $ 64,560 4,740 43,000 (8,150) $ 184,150 $ 2,920 780 14,060 e 30,600 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. 22,040 e 33,750 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.) $ 104,150

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q