RWP121 (Algo) Great Adventures Continuing Case

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Income statement and balance sheet data for Great Adventures, Incorporated, are provided below.

GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
Net sales revenues		$ 201,770
Interest revenue		480
Expenses:
Cost of goods sold	$ 40,300
Operating expenses	73,360
Depreciation expense	19,050
Interest expense	11,274
Income tax expense	16,300
Total expenses		160,284
Net income		$ 41,966

GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
	2025	2024
Assets
Current assets:
Cash	$ 334,394	$ 64,860
Accounts receivable	50,840	0
Inventory	10,600	0
Other current assets	1,260	5,940
Long-term assets:
Land	860,000	0
Buildings	890,000	0
Equipment	99,080	58,000
Accumulated depreciation	(28,850)	(8,900)
Total assets	$ 2,217,324	$ 119,900
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 24,400	$ 3,520
Interest payable	1,650	930
Income tax payable	16,300	14,360
Other current liabilities	31,800	0
Notes payable (current)	84,383	0
Notes payable (long-term)	807,695	33,600
Stockholders equity:
Common stock	156,000	32,240
Paid-in capital	1,231,600	0
Retained earnings	61,496	35,250
Treasury stock	(198,000)	0
Total liabilities and stockholders equity	$ 2,217,324	$ 119,900

As you can tell from the financial statements, 2025 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.

RWP12-1 (Algo) Great Adventures Continuing Case Part 1 Required: 1. Calculaie the following risk ratios for 2025 . (Use 365 days in a year. Round your intermediate calculations and fin. answers to 1 decimal place.) RWP12-1 (Algo) Great Adventures Continuing Case Part 2 2. Calculate the following profitability ratios for 2025 . (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.)