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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

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 $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
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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