Required information Great Adventures Problem AP12-1 Skip to question [The following information applies...
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Accounting
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Great Adventures Problem AP12-1
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Income statement and balance sheet data for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues
$
187,140
Interest revenue
340
Expenses:
Cost of goods sold
$
39,600
Operating expenses
64,820
Depreciation expense
18,350
Interest expense
9,528
Income tax expense
15,600
Total expenses
147,898
Net income
$
39,582
GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and 2021
2022
2021
Assets
Current assets:
Cash
$
274,574
$
64,720
Accounts receivable
49,580
0
Inventory
9,200
0
Other current assets
1,120
5,380
Long-term assets:
Land
720,000
0
Buildings
855,000
0
Equipment
84,660
51,000
Accumulated depreciation
(27,450
)
(8,550
)
Total assets
$
1,966,684
$
112,550
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable
$
23,000
$
3,240
Interest payable
1,300
860
Income tax payable
15,600
14,220
Other current liabilities
27,600
0
Notes payable (current)
70,239
0
Notes payable (long-term)
678,653
32,200
Stockholders equity:
Common stock
142,000
27,480
Paid-in capital
1,104,200
0
Retained earnings
60,092
34,550
Treasury stock
(156,000
)
0
Total liabilities and stockholders equity
$
1,966,684
$
112,550
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.)
\begin{tabular}{|c|l|l|l|} \hline & & \\ \hline a. & Gross profit ratio. (Hint: Use net sales revenues) & % \\ \hline b. & Return on assets. & % \\ \hline c. & Profit margin. (Hint: Use net sales revenues) & % \\ \hline d. & Asset turnover. (Hint: Use net sales revenues) & & times \\ \hline e. & Return on equity. & % \\ \hline \end{tabular}
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