The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 700,000 1,600,000 2,000,000 4,900,000 $9,200,000 $7,800,000 860,000 Accounts receivable Inventory Long-term assets 24 1,100,000 1,500,000 4,340,000 Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $1,920,000 $1,760,000 2,400,000 1,900,000 2,980,000 $9,200,000 2,500,000 1,900,000 1,640,000 $7,800,000 Total liabilities and stockholders' equity Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 2.5times 35%
The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 700,000 1,600,000 2,000,000 4,900,000 $9,200,000 $7,800,000 860,000 Accounts receivable Inventory Long-term assets 24 1,100,000 1,500,000 4,340,000 Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $1,920,000 $1,760,000 2,400,000 1,900,000 2,980,000 $9,200,000 2,500,000 1,900,000 1,640,000 $7,800,000 Total liabilities and stockholders' equity Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 2.5times 35%
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.7E
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