The 2018 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold...
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The 2018 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 Sheet December 31, 2018 and 2017 2018 2017 Assets Current assets: S 700,000 860,000 1,100,000 1,500,000 4,900,000 ,340,000 Cash Accounts receivable 1,600,000 2,000,000 Long-term assets Total assets $9,200,000 $7,800,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $1,920,000 $1,760,000 2,400,000 2,500,000 1,900,000 1,640,000 1,900,000 2,980,000 Total liabilities and stockholders' equity $9,200,000 $7,800,000 Industry averages for the following profitability ratios are as follows 45 % 25 % 15% 2.5 times 35 % Gross profit ratio Return on assets Profit margin Asset turnover Return on equity Required 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 turnover Return on equity times 2. Do you think the company is more profitable or less profitable than the industry average? More profitable Less profitable
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