Calculate the profitability ratios for adrian express

Assignment Help Financial Accounting
Reference no: EM132557920

The 2021 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.

ADRIAN EXPRESS

Balance Sheets

December 31, 2020 and 2021

Assets                                                   2021                           2020

Current assets:

Cash                                            $720,000               $870,000

Accounts receivable                       1,625,000              1,115,000

Inventory                                      2,035,000             1,525,000

Long-term assets                          4,920,000                4,350,000

Total assets                                $9,300,000                $7,860,000

Liabilities and Stockholders' Equity

Current liabilities                            $1,942,000                $1,772,000

Long-term liabilities                         2,418,000                2,512,000

Common stock                                 1,925,000              1,915,000

Retained earnings                             3,015,000             1,661,000

Total liabilities and stockholders' equity $9,300,000            $7,860,000

Industry averages for the following profitability ratios are as follows:

Gross profit ratio 45%

Return on assets 25%

Profit margin 15%

Asset turnover 2.5times

Return on equity 35%

Required:

Question 1. Calculate the five profitability ratios listed above for Adrian Express. (Round your answers to 1 decimal place.)

Profitability Ratios

Gross profit ratio%

Return on assets%

Profit margin%

Asset turnovertimes

Return on equity%

Reference no: EM132557920

Questions Cloud

The human body and the flight environment : What type of hypoxia do you believe to be the most dangerous to the aviator? Provide a detailed explanation on why you believe it to be the most dangerous type.
Non-profit and professional sport : How the environmental factors can affect their operation for public, non-profit and professional sport
Calculate depreciation expense under units of production : Calculate depreciation expense for 2018 & 2019 under Units of production, assuming the van was driven 20,000 km in 2018 and 25,000 km in 2019.
What should be the adjusted cash balance at September : Bank service charges for September R.O. 40, check erroneously charged by bank R.O. 300. What should be the adjusted cash balance at September
Calculate the profitability ratios for adrian express : Calculate the Profitability Ratios, Gross profit ratio%, Return on assets%, Profit margin% and Asset turnovertimes for Adrian Express
Describe about main coverage and inpatient : Roughly describe about main coverage and inpatient & outpatient coverage of Employee Benefit Insurance.
Determining the covid-19 pandemic : Critically discuss, with relevant examples, whether the COVID-19 pandemic has brought about the end of overtourism and tourist mobility?
What did mazaya company show as total debits : Share capital-ordinary 1,500; Dividends 750; Revenues 22,500, Expenses 18,750; What did Mazaya Company show as total debits on its trial balance
Norms of competition in the video game industry : In what ways did Nintendo's Wii break with the norms of competition in the video game industry? How defensible was its position?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd