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Question: Income statement and balance sheet data for

Income statement and balance sheet data for Great Adventures, Inc., are provided below.
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
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.
Required:
1. Calculate the following risk ratios for 2025.
a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales.)
b. Average collection period.
c. Inventory turnover ratio.
d. Average days in inventory.
e. Current ratio.
f. Acid-test ratio. (Hint: There are no current investments.)
g. Debt to equity ratio.
h. Times interest earned ratio.
2. Calculate the following profitability ratios for 2025.
a. Gross profit ratio. (Hint: Use net sales revenues.)
b. Return on assets.
c. Profit margin. (Hint: Use net sales revenues.)
d. Asset turnover. (Hint: Use net sales revenues.)
e. Return on equity

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. Required: 1. Calculate the following risk ratios for 2025. a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales.) b. Average collection period. c. Inventory turnover ratio. d. Average days in inventory. e. Current ratio. f. Acid-test ratio. (Hint: There are no current investments.) g. Debt to equity ratio. h. Times interest earned ratio. 2. Calculate the following profitability ratios for 2025. a. Gross profit ratio. (Hint: Use net sales revenues.) b. Return on assets. c. Profit margin. (Hint: Use net sales revenues.) d. Asset turnover. (Hint: Use net sales revenues.) e. Return on equity


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