The following income statement and balance sheets for The Athletic Attic are provided.

Required:

Assuming that all sales were on account, calculate the following risk ratios for 2021:

1. Receivables turnover ratio.

2. Average collection period.

3. Inventory turnover ratio.

4. Average days in inventory.

5. Current ratio.

6. Acid-test ratio.

7. Debt to equity ratio.

8. Times interest earned ratio.

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THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,900,000 Cost of goods sold 5,450,000 Gross profit 3,450,000 Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000 $1,230,000 Net income