Income statement and balance sheet data for Great Adventures, Inc., are provided
ID: 2447176 • Letter: I
Question
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
As you can tell from the financial statements, 2017 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 shares of stock and hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson. Assume all sales and services are on credit.
Calculate the following risk ratios for 2017. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)
Receivables turnover ratio?
Average collection period
Inventory turnover ratio
Average days in inventory
Curent ratio
Acid-test ratio
Debt to equity ratio
Times interest earned ratio
2. Calculate the following profitability ratios for 2017. (Round your answers to 2 decimal places.)
Gross profit ratio (on the MU watches)
Return on assets
Profit margin
Asset turnover
Return on equity
GREAT ADVENTURES, INC.Income Statement
For the Year Ended December 31, 2017 Revenues: Service revenue (clinic, racing, TEAM) $549,000 Sales revenue (MU watches) 124,000 Total revenues $673,000 Expenses: Cost of goods sold (MU watches) 73,000 Operating expenses 304,576 Depreciation expense 53,000 Interest expense 30,024 Income tax expense 58,800 Total expenses 519,400 Net income $153,600
Explanation / Answer
The mean of the sampling distribution of the sample proportion , when the sample size n = 100 and the population proportion p = 0.58, is 58.0