The 2024 income statement of Adrian Express reports sales of $20,710,000, cost of goods sold of $12,600,000, and net income of $1,980,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 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 45% 25% 15% 8.5 35% times 2024 2023 $840,000 $930,000 1,775,000 1,205,000 2,245,000 1,675,000 5,040,000 4,410,000 $9,900,000 $8,220,000 $2,074,000 $1,844,000 2,526,000 2,584,000 2,075,000 2,005,000 3,225,000 1,787,000 $9,900,000 $8,220,000 Complete this question by entering your answers in the tabs below. 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?

The 2024 income statement of Adrian Express reports sales of $20,710,000, cost of goods sold of $12,600,000, and net income of $1,980,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 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 45% 25% 15% 8.5 35% times 2024 2023 $840,000 $930,000 1,775,000 1,205,000 2,245,000 1,675,000 5,040,000 4,410,000 $9,900,000 $8,220,000 $2,074,000 $1,844,000 2,526,000 2,584,000 2,075,000 2,005,000 3,225,000 1,787,000 $9,900,000 $8,220,000 Complete this question by entering your answers in the tabs below. 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?

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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