The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of$1,700,000. Balance sheet information is provided in the following table.ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 202020212020AssetsCurrent assets:CashAccounts receivableInventoryLong-term assets$ 700,0001,600,0002,000,0004,900,000$9,200,000$860,0001,100,0001,500,0004,340,000Total assets$7,800,000Liabilities and Stockholders' EquityCurrent liabilitiesLong-term liabilitiesCommon stockRetained earnings$1,920,000 $1,760,0002,500,0001,900,0001,640,000$7,800,0002,400,0001,900,0002,980,000Total liabilities and stockholders' equity$9,200,000Industry averages for the following profitability ratios are as follows:Gross profit ratioReturn on assetsProfit margin45%25%15%2.5times35%Asset turnoverReturn on equity Required:1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)Profitability Ratios

Gross profit = sales - cost of goods sold = $19310000-12250000 = $7,060,000

Answered: The 2021 income statement of Adrian…

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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es MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income MOSS COMPANY Selected Balance Sheet Information 2021 At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 85,650 26,000 61,000 Cash flows from operating activities: Net income 32,400 2,150 2020 $ 525,000 335,600 189,400 123,000 38,000 28,400 9,500 $ 18,900 Changes in current operating assets and liabilities $ 27,800 34,000 54,300 Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. 26,700 2,400 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 38,000 $ $ 18,300 38,000 56,300
Income Statement For the year Ended December 31, 2020 Sales Cost of Goods Sold $ 390,000 235,000 Gross Profit S 155,000 Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense S61000 14,000 26,000 17,000 120,000 Net Income $35000 Terry Company Balance Sheets Dec. 31, 2020 Dec. 1L Assets 2019 $ 30,000 35,000 84,000 8,000 130,000 (62.000) Cash Accounts Receivable (net) Inventory Prepaid Expense Plant Assets Accumulated Depreciation S16.000 28,000 110,000 12,000 178,000 (76,000) Total Assets $ 268,000 $ 225,000 I Liabilities and Stockholders' Equity Accounts Payable Wages Payable Income Tax Payable Common Stock Retained Earnings $ 27.000 6,000 3,000 135,000 97,000 S 14,000 2,500 4,500 125,000 79,000 Total Liabilities and S 268,000 $ 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash REQUIRED Prepare…
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