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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 | $ | 193,410 | ||||
Interest revenue | 400 | |||||
Expenses: | ||||||
Cost of goods sold | $ | 39,900 | ||||
Operating expenses | 68,480 | |||||
Depreciation expense | 18,650 | |||||
Interest expense | 10,276 | |||||
Income tax expense | 15,900 | |||||
Total expenses | 153,206 | |||||
Net income | $ | 40,604 | ||||
GREAT ADVENTURES, INC. | ||||||||
Balance Sheets | ||||||||
December 31, 2022 and 2021 | ||||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 300,210 | $ | 64,780 | ||||
Accounts receivable | 50,120 | 0 | ||||||
Inventory | 9,800 | 0 | ||||||
Other current assets | 1,180 | 5,620 | ||||||
Long-term assets: | ||||||||
Land | 780,000 | 0 | ||||||
Buildings | 870,000 | 0 | ||||||
Equipment | 90,840 | 54,000 | ||||||
Accumulated depreciation | (28,050 | ) | (8,700 | ) | ||||
Total assets | $ | 2,074,100 | $ | 115,700 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 23,600 | $ | 3,360 | ||||
Interest payable | 1,450 | 890 | ||||||
Income tax payable | 15,900 | 14,280 | ||||||
Other current liabilities | 29,400 | 0 | ||||||
Notes payable (current) | 76,301 | 0 | ||||||
Notes payable (long-term) | 733,955 | 32,800 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 148,000 | 29,520 | ||||||
Paid-in capital | 1,158,800 | 0 | ||||||
Retained earnings | 60,694 | 34,850 | ||||||
Treasury stock | (174,000 | ) | 0 | |||||
Total liabilities and stockholders’ equity | $ | 2,074,100 | $ | 115,700 | ||||
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.
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.)
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