12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below Net sales. THE ATHLETIC ATTIC Income Statements: For the years ended December 31 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 2022 2021 $9,100,000 $10,680,000 6,980,000 5,600,000 3,700,000 3,500,000 1,620,000 1,570,000 200,000 200,000 42,000 424,000 2,286,000 2,182,000 $ 1,414,000 $1,318,000 42,000 370,000 Assets Current assets: THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $ 227,000 $ 156,000 $ 208,000 992,000 742,000 762,000 1,727,000 1,357,000 1,027,000 132,000 102,000 77,000 1,180,000 1,180,000. 1,180,000. (620,000) (420,000) (220,000) $3,034,000 $3,638,000 $3,117,000 $ 180,800 $ 111,000 $ 88,800. 4,200 42,000 0 4,200 37,000 32,000 520,000 520,000 520,000 620,000 620,000 . 620,000 2,271,000. 1,829,000 1,769,000 Total liabilities and stockholders' equity $3,638,000 $3,117,000 $3,034,000 Stockholders' equity: Common stock Retained earnings Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratio 12.1 times 12.3 times Inventory turnover ratio 4.7 times Current ratio Debt to equity ratio to 1 % 4.5 times to 1 % 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2021 2022 % % % % % % times times