Income statement and balance sheet data for Great Adventures, Inc., are provided below. ...
70.2K
Verified Solution
Question
Accounting
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 | ||
Revenues: | ||
Service revenue (clinic, racing, TEAM) | $549,000 | |
Sales revenue (MU watches) | 124,000 | |
Total revenues | $673,000 | |
Expenses: | ||
Cost of goods sold (MU watches) | 73,000 | |
Operating expenses | 304,576 | |
Depreciation expense | 53,000 | |
Interest expense | 30,024 | |
Income tax expense | 58,800 | |
Total expenses | 519,400 | |
Net income | $153,600 | |
GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 | |||||||
2020 | 2019 | Increase (I) or Decrease (D) | |||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 295,570 | $ | 141,000 | 154,570 | (I) | |
Accounts receivable | 49,500 | 38,000 | 11,500 | (I) | |||
Inventory | 17,450 | 14,300 | 3,150 | (I) | |||
Other current assets | 13,450 | 11,300 | 2,150 | (I) | |||
Long-term assets: | |||||||
Land | 550,000 | 0 | 550,000 | (I) | |||
Buildings | 1,000,000 | 0 | 1,000,000 | (I) | |||
Equipment | 68,000 | 68,000 | |||||
Less: Accumulated depreciation | (79,000) | (26,000) | 53,000 | (I) | |||
Total assets | $ | 1,914,970 | $ | 246,600 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $12,450 | $9,300 | 3,150 | (I) | |||
Interest payable | 780 | 780 | |||||
Income tax payable | 58,800 | 39,500 | 19,300 | (I) | |||
Long-term liabilities: | |||||||
Notes payable | 523,820 | 31,500 | 492,320 | (I) | |||
Stockholders' equity: | |||||||
Common stock | 120,000 | 20,000 | 100,000 | (I) | |||
Paid-in capital | 1,105,000 | 0 | 1,105,000 | (I) | |||
Retained earnings | 184,120 | 145,520 | 38,600 | (I) | |||
Treasury stock | (90,000) | 0 | (90,000) | (I) | |||
Total liabilities and stockholders' equity | $ | 1,914,970 | $ | 246,600 | |||
As you can tell from the financial statements, 2020 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 shares of stock to hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson. Assume all sales and services are on credit.
Required:
1. Calculate the following risk ratios for 2020. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)
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
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.