Required Information RWP12-1 (Static) Great Adventures Continuing Case [The following Information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. Net sales revenues Interest revenue Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $ 38,500 51,400 17,250 6,785 14,500 $ 164,150 120 128,435 $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 2025 2024 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 $ 180,568 47,600 7,000 $ 64,500 0 900 4,500 500,000 800,000 62,000 (25,250) $ 1,572,818 40,000 (8,000) $ 101,000 $ 2,800 Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock $ 20,800 750 14,500 21,000 750 14,000 0 48,014 475,869 30,000 120,000 20,000 904,000 57,885 33,450 (90,000) Total liabilities and stockholders' equity $ 1,572,818 $ 101,000 As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzle 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. RWP12-1 (Static) Great Adventures Continuing Case Part 2 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.) a. Gross profit ratio. (Hint: Use net sales revenues.) b. Return on assets. %6 % c. Profit margin. (Hint: Use net sales revenues.) % d. Asset turnover. (Hint: Use net sales revenues.) times e. Return on equity. %

Required Information RWP12-1 (Static) Great Adventures Continuing Case [The following Information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Incorporated, are provided below. Net sales revenues Interest revenue Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $ 38,500 51,400 17,250 6,785 14,500 $ 164,150 120 128,435 $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 2025 2024 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 $ 180,568 47,600 7,000 $ 64,500 0 900 4,500 500,000 800,000 62,000 (25,250) $ 1,572,818 40,000 (8,000) $ 101,000 $ 2,800 Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock $ 20,800 750 14,500 21,000 750 14,000 0 48,014 475,869 30,000 120,000 20,000 904,000 57,885 33,450 (90,000) Total liabilities and stockholders' equity $ 1,572,818 $ 101,000 As you can tell from the financial statements, 2025 was an especially busy year. Tony and Suzle 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. RWP12-1 (Static) Great Adventures Continuing Case Part 2 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.) a. Gross profit ratio. (Hint: Use net sales revenues.) b. Return on assets. %6 % c. Profit margin. (Hint: Use net sales revenues.) % d. Asset turnover. (Hint: Use net sales revenues.) times e. Return on equity. %

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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