2021 $6,600,000 4,700,000 1,900,000 The Sports Shack Income Statements For the years ended December 31 2022 Sales revenue $8,200,000 Cost of goods sold 6,100,000 Gross profit 2,100,000 Expenses: Operating expenses 1,450,000 Depreciation expense 90,000 Interest expense 25,000 Income tax expense 95,000 Total expenses 1,660,000 Net income $ 440,000 1,400,000 100,000 50,000 80,000 1,630,000 $ 270,000 The Sports Shack Balance Sheets December 31 2022 2021 2020 $ 290,000 1,050,000 919,000 80,000 $ 218,000 680,000 1,250,000 90,000 $ 196,000 880,000 1,100,000 65,000 1,100,000 (440,000) $2,999,000 1,200,000 (350,000) $3,088,000 900,000 (250,000) $2,891,000 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 $ $ $ 50,000 2,000 38,000 65,000 4,000 40,000 55,000 6,000 30,000 200,000 400 400,000 300,000 900,000 1,809,000 $2,999,000 900,000 1,679,000 $3,088,000 900,000 1,600,000 $2,891,000 Required: 1. Calculate the following risk ratios for 2021 and 2022: 2. Calculate the following profitability ratios for 2021 and 2022: 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2018 to 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the following risk ratios for 2021 and 2022. (Decreases should be indicated by a minus sign. Round your answers to 1 decimal place.) 2021 times Receivables turnover ratio 2022 times times times Inventory turnover ratio Current ratio Debt to equity ratio to 1 to 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: 2. Calculate the following profitability ratios for 2021 and 2022: 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2018 to 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio Return on assets % Profit margin Asset turnover times times Required: 1. Calculate the following risk ratios for 2021 and 2022: 2. Calculate the following profitability ratios for 2021 and 2022: 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2018 to 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Based on the ratios calculated, determine whether overall risk and profitability improved from 2018 to 2019. | 1 | 2 A Yes O No