i Required information Problem 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: 2021 2022 $11,240,000 $9,700,000 7,340,000 6,000,000 3,900,000 3,700,000 1,660,000 1,610,000 200,000 200,000 46,000 Income tax expense 472,000 2,378,000 2,266,000 Net income $ 1,522,000 $1,434,000 Operating expenses Depreciation expense Interest expense Total expenses 46,000 410,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 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 2021 2020 $ 231,000 996,000 1,731,000 136,000 $ 160,000 $ 216,000 746,000 1,361,000 106,000 766,000 1,031,000 81,000 1,340,000 1,340,000 1,340,000 (660,000) (460,000) (260,000) $3,774,000 $3,253,000 $3,174,000 $ 192,400 $ 123,000 $ 104,400 4,600 0 4,600 46,000 41,000 36,000 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 560,000 560,000 560,000 660,000 660,000 660,000 2,311,000 1,869,000 1,809,000 Total liabilities and stockholders' equity $3,774,000 $3,253,000 $3,174,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2021 2022 times times times times to 1 to 1 % % Problem 12-6B Part 2 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