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Business, 14.05.2021 02:40 juliannabartra

The 2021 income statement of Adrian Express reports sales of $18,612,000, cost of goods sold of $11,696,000, and net income of $1,680,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 680,000 $ 840,000 Accounts receivable 1,560,000 1,080,000 Inventory 1,960,000 1,480,000 Long-term assets 4,880,000 4,320,000 Total assets $ 9,080,000 $ 7,720,000 Liabilities and Stockholders' Equity Current liabilities $ 1,940,000 $ 1,740,000 Long-term liabilities 2,380,000 2,480,000 Common stock 1,920,000 1,920,000 Retained earnings 2,840,000 1,580,000 Total liabilities and stockholders' equity $ 9,080,000 $ 7,720,000 Industry averages for the following four risk ratios are as follows: Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year. Round your answers to 1 decimal place.) 2. Do you think the company is more risky or less risky than the industry average

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The 2021 income statement of Adrian Express reports sales of $18,612,000, cost of goods sold of $11,...

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