80.2K

Verified Solution

Link Copied!

Great Adventures Problem AP12-1 [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below. $197,590 440 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses : Cost of goods sold $40,100 Operating expenses 70,920 Depreciation expense 18,850 Interest expense 10,775 Income tax expense 16,100 Total expenses Net income 156,745 $ 41,285 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 $ $ 64,820 317,302 50,480 10,200 1,220 5,780 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 820,000 880,000 94,960 (28,450) $2,145,712 56,000 (8,800) $117,800 Cuant : $ 3,440 910 14,320 tres and Stockholders Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes payable (current) Notes payable (long-term) Stockholders' equity: Common stock Paid in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 24,000 1.550 16,100 30.600 80, 342 770,825 33,200 30,880 152,000 1,195, 200 61,095 (186,000) $2,145,712 35,050 $117.800 As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities. ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child. Great Adventures Problem AP12-1 Part 2 2. Calculate the following profitability ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) Gross profit ratio. (Hint: Use net sales revenues) Return on assets Profit margin. (Hint: Use net sales revenues) Asset turnover (Hint: Use net sales revenues) times Return on equity

Answer & Explanation Solved by verified expert

See Answer