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The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. 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 debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% Average collection period Average days in inventory Current ratio Debt to equity ratio ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio 2024 Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salarles payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the industry average? $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 days days to 1 $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 Rea 1 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to 1 decimal place. Do not round your intermediate calculations. 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,760,000 $1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Den 2 and 3>

The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net income of $1,690,000. 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 debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% Average collection period Average days in inventory Current ratio Debt to equity ratio ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios Average collection period Average days in inventory Current ratio Debt to equity ratio 2024 Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salarles payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the industry average? $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 days days to 1 $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 Rea 1 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to 1 decimal place. Do not round your intermediate calculations. 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,760,000 $1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Den 2 and 3>

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net Income of $1,690,000. 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 debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios 2024 Average collection period Average days in inventory Current ratio Debt to equity ratio $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current llabilities consist of accounts payable and salaries payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the Industry average? $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 days days to 1 % 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,750,000 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to dec al place. Do not round your intermediate calculations. $ 1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Reg 2 and 3 >
Transcribed Image Text:The 2024 Income statement of Adrian Express reports sales of $18,957,000, cost of goods sold of $11,971,500, and net Income of $1,690,000. 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 debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four ratios are as follows: 25 days 60 days 2 to 1 35% ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Req 1 Req 2 and 3 Complete this question by entering your answers in the tabs below. Ratios 2024 Average collection period Average days in inventory Current ratio Debt to equity ratio $ 690,000 1,580,000 1,980,000 4,890,000 $ 9,140,000 Average collection period Average days in inventory Current ratio Debt to equity ratio Required: 1. Calculate the four ratios listed above for Adrian Express In 2024 assuming all sales are on credit and current llabilities consist of accounts payable and salaries payable. 2. Do you think the company is more or less efficient at managing its current assets than the Industry average? 3. Do you think the company is more risky or less risky than the Industry average? $ 1,930,000 2,390,000 1,910,000 2,910,000 $ 9,140,000 days days to 1 % 2023 $ 850,000 1,090,000 1,490,000 4,330,000 $ 7,750,000 1. Calculate the four ratios listed above for Adrian Express in 2024 assuming all sales are on credit and current liabilities consist of accounts payable and salaries payable. Note: Use 365 days in a year. Round your answers to dec al place. Do not round your intermediate calculations. $ 1,750,000 2,490,000 1,910,000 1,610,000 $ 7,760,000 Reg 2 and 3 >
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