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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

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

   

GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2014
  Revenues:
  Service revenue (clinic, racing, TEAM) 576,000
  Sales revenue (MU watches) 131,000

       Total revenues $707,000
  Expenses:
     Cost of goods sold (MU watches) 69,100
     Operating expenses 293,276
     Depreciation expense 49,900
     Interest expense 23,760
     Income tax expense 56,000
        Total expenses 492,036

  Net income $214,964

GREAT ADVENTURES, INC.
Balance Sheet
December 31, 2014 and 2013
2014 2013 Increase (I) or Decrease (D)
  Assets
  Current assets:
     Cash $ 325,393    $145,580    179,813    (I)
     Accounts receivable 44,200    34,900    9,300    (I)
     Inventory 15,100    13,200    1,900    (I)
     Other current assets 12,100    10,500    1,600    (I)
  Long-term assets:
     Land 489,000    0    489,000    (I)
     Buildings 990,000    0    990,000    (I)
     Equipment 63,200    63,200   
     Less: Accumulated depreciation (75,850) (25,950) 49,900    (I)


  Total assets $1,863,143    $241,430   


  Liabilities and Stockholders' Equity
  Current liabilities:
     Accounts payable $   12,300    $ 10,700    1,600    (I)
     Interest payable 830    830   
     Income tax payable 57,300    38,400    18,900    (I)
  Long-term liabilities:
     Notes payable 410,949    31,800    379,149    (I)
  Stockholders' equity:
     Common stock 118,000    19,000    99,000    (I)
     Paid-in capital 1,093,300    0    1,093,300    (I)
     Retained earnings 243,264    140,700    102,564    (I)
     Treasury stock (72,800) 0    (72,800)   (I)


      Total liabilities and stockholders' equity $1,863,143    $241,430   

   As you can tell from the financial statements, 2014 was an especially busy year. Tony and Suzie were able to use the $1.19 million received from the issuance of 99,000 shares of stock and 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.



6.
value:
10.00 points

Required:
1.

Calculate the following risk ratios for 2014. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.)

   


  Receivable turnover ratio    times
  Average collection period    days
  Inventory turnover ratio    times
  Average days in inventory    days
  Current ratio    to 1
  Acid-test ratio    to 1
  Debt to equity ratio    %
  Times interest earned ratio    times

check my workreferences

7.
value:
10.00 points

2. Calculate the following profitability ratios for 2014. (Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.)

   


  Gross profit ratio (on the MU watches)    %
  Return on assets    %
  Profit margin    %
  Asset turnover    times
  Return on equity    %

check my workreferences

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May 14 2020 View more View Less

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