Income statement and balance sheet data for The Sports Shack are provided below.

Required:
1. Calculate the following risk ratios for 2015 and 2016.
Receivables turnover ratio ....Current ratio
Inventory turnover ratio ......Debt to equity ratio
2. Calculate the following profitability ratios for 2015 and 2016.
Gross profit ratio .... Profit margin
Return on assets .... Asset turnover
3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2015 to2016.

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The Sports Shack Income Statements For the vears ended December 31 2016 2015 Sales revenue Cost of goods sold Gross profit S 8,200,000 S6,600,000 4,700,000 1,900,000 6.100.000 2,100,000 xpenses Operating expenses Depreciation expense Interest expense Income tax expense 1,400,000 100,000 50,000 80.000 1,630,000 S 440,000 S270,000 1,450,000 90,000 25,000 95,000 1,660,000 Total expense Net income The Sports Shack Balance Sheets December 31 2016 2015 2014 Assets Current assets Accounts receivable Inventorv Supplies S290,000 1,050,000 919,000 80.000 S 218,000 680.000 1,250,000 90.000 196,000 880,000 1,100,000 65,000 Long-term assets 1.100.000 Accumulated depreciation (440.000) S2,999,000 1.200.000 (350,000) S3,088,000 900,000 (250,000) S2,891,000 quipment Total assets Liabilities and Stockholders' Equitv Current liabilities Accounts payable Interest pavable S50,000 2,000 38,000 S 65,000 4.000 40,000 S 55,000 6.000 30.000 Income tax payable Long-term liabilities Notes payable Stockholders equity: Common stock 200,000 400,000 300,000 900,000 1,809,000 S2,999,000 900,000 1,679,000 S3,088,000 900.000 1600.000 S2,891,000 Retained eamingS Total liabilities and equity