How to find the answer to debt to equity ratio? The 2021 income statement...
80.2K
Verified Solution
Question
Accounting
How to find the answer to debt to equity ratio?
The 2021 income statement of Adrian Express reports sales of $15,327,000, cost of goods sold of $9,106,000, and net income of $1,580,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash 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 $ 580,000 $ 740,000 1,360,000 980,000 1,760,000 1,380,000 4,780,000 4,220,000 $8,480,000 $7,320,000 $2,000,000 $1,640,000 2,280,000 2,380,000 1,960,000 1,960,000 2,240,000 1,340,000 $8,480,000 $7,320,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio 25 days 60 days 2 to 1 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.) Answer is complete but not entirely correct. Risk Ratios Average collection period Average days in inventory 27.9 days days 62.9 Current ratio 1.9 to 1 Debt to equity ratio 1.1 %Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.