The 2024 Income statement of Adrian Express reports sales of $19,510,000, cost of goods sold of $12,300,000, and net Income of $1,740,000. 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 liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 45% 25% 15% 2.5 Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 35% times 37.0 % 20.3 % Complete this question by entering your answers in the tabs below. 2824 8.9 % 2.3 times 2023 $720,000 1,625,000 2,035,000 4,920,000 $9,300,000 $7,860,000 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? $870,000 1,115,000 1,525,000 4,350,000 $1,942,000 $1,772,000 2,418,000 2,512,000 1,925,000 1,915,000 3,015,000 1,661,000 $9,300,000 $7,860,000 Required 1 Required 2 Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios
The 2024 Income statement of Adrian Express reports sales of $19,510,000, cost of goods sold of $12,300,000, and net Income of $1,740,000. 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 liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 45% 25% 15% 2.5 Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 35% times 37.0 % 20.3 % Complete this question by entering your answers in the tabs below. 2824 8.9 % 2.3 times 2023 $720,000 1,625,000 2,035,000 4,920,000 $9,300,000 $7,860,000 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? $870,000 1,115,000 1,525,000 4,350,000 $1,942,000 $1,772,000 2,418,000 2,512,000 1,925,000 1,915,000 3,015,000 1,661,000 $9,300,000 $7,860,000 Required 1 Required 2 Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.) Profitability Ratios
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:The 2024 Income statement of Adrian Express reports sales of $19,510,000, cost of goods sold of $12,300,000, and net Income of
$1,740,000. 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 liabilities
Common stock
Retained earnings
Total liabilities and stockholders' equity
Industry averages for the following four risk ratios are as follows:
Gross profit ratio
Return on assets
Profit margin
Asset turnover
Return on equity
ADRIAN EXPRESS
Balance Sheets
December 31, 2024 and 2023
45%
25%
15%
Gross profit ratio
Return on assets
2.5
Profit margin
Asset turnover
Return on equity
35%
times
37.0 %
20.3 %
Complete this question by entering your answers in the tabs below.
2024
8.9 %
2.3 times
%6
2023
$720,000
1,625,000
2,035,000
1,525,000
4,920,000
4,350,000
$9,300,000 $7,860,000
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?
$870,000
1,115,000
$1,942,000 $1,772,000
2,418,000
1,925,000
3,015,000
Required 1 Required 2
Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)
Profitability Ratios
2,512,000
1,915,000
1,661,000
$9,300,000 $7,860,000
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