Income statement and balance sheet data for The Athletic Attic are provided below. Required: 1. Calculate the

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Income statement and balance sheet data for The Athletic Attic are provided below.
Income statement and balance sheet data for The Athletic Attic
Income statement and balance sheet data for The Athletic Attic

Required:
1. Calculate the following risk ratios for 2012 and 2013:
a. Receivables turnover ratio.
b. Inventory turnover ratio.
c. Current ratio.
d. Debt to equity ratio.
2. Calculate the following profitability ratios for 2012 and 2013:
a. Gross profit ratio.
b. Return on assets.
c. Profit margin.
d. Asset turnover.
3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2012 to 2013.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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