2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Net sales 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 2025 2024 $ 11,520,000 10,000,000 7,520,000 6,200,000 4,000,000 3,800,000 1,680,000 1,630,000 200,000 200,000 48,000 496,000 48,000 430,000 2,308,000 2,424,000 $ 1,576,000 $ 1,492,000 THE ATHLETIC ATTIC Balance Sheets December 31 Assets Current assets: 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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2025 2024 2023 $ 233,000 998,000 1,733,000 $ 162,000 748,000 1,363,000 108,000 $220,000 768,000 1,033,000 83,000 138,000 1,420,000 (680,000) 1,420,000 (480,000) 1,420,000 (280,000) $ 3,321,000 $ 3,244,000 $ 3,842,000 $ 198,200 4,800 $ 129,000 0 48,000 43,000 $ 112,200 4,800 38,000 580,000 580,000 580,000 680,000 2,331,000 $ 3,842,000 680,000 1,889,000 $ 3,321,000 680,000 1,829,000 $ 3,244,000