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The 2018 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold...

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Accounting

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: Cash $ 700,000 $ 860,000 Accounts receivable 1,600,000 1,100,000 Inventory 2,000,000 1,500,000 Long-term assets 4,900,000 4,340,000 Total assets $ 9,200,000 $ 7,800,000 Liabilities and Stockholders' Equity Current liabilities $ 1,920,000 $ 1,760,000 Long-term liabilities 2,400,000 2,500,000 Common stock 1,900,000 1,900,000 Retained earnings 2,980,000 1,640,000 Total liabilities and stockholders' equity $ 9,200,000 $ 7,800,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio 45 % Return on assets 25 % Profit margin 15 % Asset turnover 2.5 times Return on equity 35 % Required: 1. Calculate the five profitability ratios listed above for Adrian Express

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