Question

Required information [The following information applies to the questions displayed below) Income statement and balance sheet data for Great Adventures, Inc., are provided below. $168,330 160 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold $38, 700 Operating expenses 53,840 Depreciation expense 17,450 Interest expense 7,284 Income tax expense 14,700 Total expenses Net income 131, 974 $ 36,516 GREAT MOVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ $ 64,540 Assets Current assots Cash Accounts receivable Inventory Other current assets Long-term assets. 197,660 47.960 7,400 940 4,660 Buildings Equipment Accumulated depreciation Total assets 540,000 810,000 66,120 (25.650) $1,644,430 42.000 8.100) $ 103, 100 < Prev 10 of 10 Next >

Answer 1

Solution - Receivabler turnover ratio ! Net sales revenues for net credit sales - Avarage accounts receivable § 168,330 47960 +0 - - 7.0 times. Avarage collection period! 365 Accounts receivable turnover 365 7.0 5211 days. Inventory turnover ratio! I (c) Cost of goods sold Avarage inventory $ 38,700 Tyooto 2 7 10.5 times

(d) days in inventory: Avarage 365 Inventory turnover ratio 365 = 34.8 days. 10.5 Current ratio: total current assets. total current liabilities $ 253,960 I 111,ooy 2.3 tol Acid test ratio! If Quick assets current liabilities Quick assets cash + accounts receivable $ 197, 660 + 47,960 $ 245, 620 current liabilities $ 111,004 then, Quick ratio: I Ə to $245, 620 $ 111, 004 2.2 tol eauity ratio: o Debt XIoo. Total debt (total liabilities) Total Stock holders eauity

Page 7 x 100 $ 623,744 $ 1020/268 61.1'. = (6) Timer interest earned ratio! taxes Income before interest and Interest expense Income before Net income & interest and taxes : Income tax expenset Interest enpense 36,516 + 14,700+7, 284 7 $58,500 Interest enpense $ 7,284 then, Times interest earned ratio & $58,500 $ 1,284 3 timer