Great Adventures Problem 12-1 [The following information applies to the question
ID: 2454490 • Letter: G
Question
Great Adventures Problem 12-1
[The following information applies to the questions displayed below.]
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2017
Revenues:
Service revenue (clinic, racing, TEAM) $561,000
Sales revenue (MU watches) 136,000
Total revenues $697,000
Expenses:
Cost of goods sold (MU watches) 79,000
Operating expenses 305,176
Depreciation expense 59,000
Interest expense 30,624
Income tax expense 62,400
Total expenses 536,200
Net income $160,800
GREAT ADVENTURES, INC.
Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase (I) or Decrease (D)
Assets
Current assets:
Cash $ 319,498 $ 147,000 172,498 (I)
Accounts receivable 58,500 44,000 14,500 (I)
Inventory 18,350 14,900 3,450 (I)
Other current assets 14,350 11,900 2,450 (I)
Long-term assets:
Land 600,000 0 600,000 (I)
Buildings 1,000,000 0 1,000,000 (I)
Equipment 74,000 74,000
Less: Accumulated depreciation (86,500) (27,500) 59,000 (I)
Total assets $ 1,998,198 $ 264,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $13,350 $9,900 3,450 (I)
Interest payable 840 840
Income tax payable 62,400 42,500 19,900 (I)
Long-term liabilities:
Notes payable 586,748 34,500 552,248 (I)
Stockholders' equity:
Common stock 120,000 20,000 100,000 (I)
Paid-in capital 1,105,500 0 1,105,500 (I)
Retained earnings 202,860 156,560 46,300 (I)
Treasury stock (93,500) 0 (93,500) (I)
Total liabilities and stockholders' equity $ 1,998,198 $ 264,300
As you can tell from the financial statements, 2017 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 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. Assume all sales and services are on credit.
References
Section BreakGreat Adventures Problem 12-1
15.
value:
6.25 points
Required information
Great Adventures Problem 12-1 Part 1
Required:
1.
Calculate the following risk ratios for 2017. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)
References
Great AdventuresGreat Adventures Problem 12-1 Part 1Difficulty: Hard
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16.
value:
6.25 points
Required information
Great Adventures Problem 12-1 Part 2
2. Calculate the following profitability ratios for 2017. (Round your answers to 2 decimal places.)
References
Great AdventuresGreat Adventures Problem 12-1 Part 2Difficulty: Hard
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Explanation / Answer
Here Balance sheet information are not complete given ,Furthur For Risk ratio 2017 type of ratio require,information are missing for excat answer require.
Income statements Great Adventure for 2017 Expenses Debit Revenue Credit Cost of goods sold (MU watches) $ 79,000.00 Service revenue (clinic, racing, TEAM) $ 561,000.00 Operating Cost $ 305,176.00 Sales revenue (MU watches) $ 136,000.00 Depreciation Expenses $ 59,000.00 Interest Expenses $ 30,624.00 Income Tax expenses $ 62,400.00 Net Profits $ 160,800.00 Total $ 697,000.00 Total $ 697,000.00 Balance Sheet at year end 2017 Liabilities Amount In $ Assets Amount In $ Current Assets Equity Cash 319498 Common Stock 120000 Account Receivable 58500 Paid up capital 1105500 Inventory 18350 Retain Earning 202860 Other Current Assets 14350 Treasury Stock -93500 Long Term Assets Land 600000 Current Liability Buildings 100000 Account Payable 13350 Equipments 74000 Interest Payable 840 Less: Accumulated Dep -86500 Income Tax Payable 62400 1411450 1098198forRelated Questions
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