Income statement and balance sheet data for The Athletic Attic are provided below. of 2 THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 Net sales $12,500,000 Cost of goods sold 8,150,000 Gross profit 4,350,000 Expenses: Operating expenses 1,750,000 Depreciation expense 200,000 Interest expense 55,000 Income tax expense 580,000 Total expenses 2,585,000 Net income $ 1,765,000 2021 $11,050,000 6,900,000 4,150,000 1,700,000 200,000 55,000 500,000 2,455,000 $ 1,695,000 pok nt ences THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation $ 240,000 1,005,000 1,740,000 145,000 $ 170,000 755,000 1,370,000 115,000 $ 234,000 775,000 1,040,000 90,000 1,700,000 My Cornerstone Loan (750,000) 1,700,000 (550,000) 1,700,000 (350,000) 1,700,000 (750,000) $4,080,000 1,700,000 (550,000) $3,560,000 1,700,000 (350,000) $3,489,000 2 $ $ 151,000 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 218,500 5,500 55,000 $ 139,500 5,500 45,000 50,000 650,000 650,000 650,000 750,000 2,401,000 $4,080,000 750,000 1,959,000 $3,560,000 750,000 1,899,000 $3,489,000 es 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