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 2e2e Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $ 700,000 1,600,000 2,000,000 4,900,000 $9, 200,000 $ 860,000 1,100,000 1,500,000 4,340,000 $7,800, eae $1,920,000 2,400,000 1.900.000 2,980,000 $9,200,000 $1,760,000 2,500,000 1.900,800 1.640.ece $7,8ee, eee Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 25% 15% 2.5tines 35% Required:
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 turnover Return on equity

The Gross profit ratio is 36.6%

The Return on assets is 20%

The Profit margin is 8.8%

The Asset turnover would be 2.3 times

The Return on equity is 40.4%

Explanation:

The calculation of the five profitability ratios listed would be a follows:

Gross profit = Sales - Cost of goods sold

= $19,310,000 - $12,250,000

= $7,060,000

Gross profit ratio = Gross profit / Sales * 100

= $7,060,000 / $19,310,000 * 100

= 36.6%

The Gross profit ratio is 36.6%

Return on assets = Net income / Average total assets * 100

= $1,700,000 / [($9,200,000+$7,800,000)/2] * 100

= 20%

The Return on assets would be 20%

Profit margin = Net profit / Sales * 100

= $1,700,000 / $19,310,000 * 100

= 8.8%

The Profit margin would be 8.8%

Asset turnover = Sales / Average total assets

= $19,310,000 / [($9,200,000+$7,800,000)/2]

= 2.3 times

The Asset turnover would be 2.3 times

Return on equity = Net income / Average total equity

= $1,700,000 / [($1,900,000+$2,980,000+$1,900,000+$1,640,000)/2]

= 40.4%

The Return on equity would be 40.4%

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

lives by a moral and ethical code