Exercise 12-5 Evaluate risk ratios [LO3] The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $9.6 million, and net income of $1.6 million. Balance sheet information is provided in the following table. All amounts are in thousands.

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Exercise 12-5 Evaluate risk ratios [LO3] The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $9.6 million, and net income of $1.6 million. Balance sheet information is provided in the following table. All amounts are in thousands.??   ADRIAN EXPRESS?Balance Sheets?December 31, 2012 and 2011??  ($ in 000s)?  2012?  2011??  Assets? ? ? ? ??  Current assets:? ? ? ? ??       Cash?$?600  ?$?760  ??       Accounts receivable? ?1,400  ? ?1,000  ??       Inventory? ?1,800  ? ?1,400  ??  Long-term assets? ?4,800  ? ?4,240  ??  ??????          Total assets?$?8,600  ?$?7,400  ??  ? ? ? ? ??  Liabilities and Stockholders’ Equity? ? ? ? ??  Current liabilities?$?2,020  ?$?1,660  ??  Long-term liabilities? ?2,300  ? ?2,400  ??  Common stock? ?2,000  ? ?2,000  ??  Retained earnings? ?2,280  ? ?1,340  ??  ??????          Total liabilities and stockholders’ equity?$?8,600  ?$?7,400  ??  ? ? ? ? ????   Industry averages for the following four risk ratios are as follows:??     ??  Average collection period?25 days  ???  Average days in inventory?60 days  ???  Current ratio?2 to 1  ???  Debt to equity ratio?50%  ??????   Required:?? 1.?Calculate the four risk ratios listed above for Adrian Express in 2012. (Use 365 days in a year. Round your answers to 1 decimal place. Omit the “%” sign in your response.)??       Risk Ratios??  Average collection period?? days??  Average days in inventory?? days??  Current ratio?? to 1??  Debt to equity ratio?? %????   2.?Do you think the company is more risky or less risky than the industry averages??? ?  ?? ??? The 2012 income statement of Adrian Express reports sales of $16 million, cost of goods sold of $9.6 million, and net income of $1.6 million. Balance sheet information is provided in the following table. All amounts are in thousands.??   ADRIAN EXPRESS?Balance Sheet?December 31, 2012 and 2011??  ($ in 000s)?   2012?   2011??  Assets? ? ? ? ??  Current…

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