Income statement and balance sheet data for The Athletic Attic are provided below.

THE ATHLETIC ATTIC Income Statements For the years ended December 31

2019 2018

Net sales $11,800,000 $10,300,000

Cost of goods sold $7,700,000 $6,400,000

Gross profit $4,100,000 $3,900,000

Expenses:

Operating expenses $1,700,000 $1,650,000

Depreciation expense $200,000 $200,000

Interest expense $50,000 $50,000

Income tax expense $520,000 $450,000

Total expenses $2,470,000 $2,350,000

Net income $1,630,000 $1,550,000

THE ATHLETIC ATTIC Balance Sheets December 31

2019 2018 2017

Assets

Current assets:

Cash $235,000 $164,000 $224,000

Accounts receivable $1,000,000 $750,000 $770,000

Inventory $1,735,000 $1,365,000 $1,035,000

Supplies $140,000 $110,000 $85,000

Long-term assets:

Equipment $1,500,000 $1,500,000 $1,500,000

Less: Accumulated

depreciation (700,000) (500,000) (300,000)

Total assets $3,910,000 $3,389,000 $3,314,000

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $204,000 $135,000 $120,000

Interest payable $5,000 $0 $5,000

Income tax payable $50,000 $45,000 $40,000

Long-term liabilities:

Notes payable $600,000 $600,000 $600,000

Stockholders' equity:

Common stock $700,000 $700,000 $700,000

Retained earnings $2,351,000 $1,909,000 $1,849,000

Total liabilities and

stockholders equity $3,910,000 $3,389,000 $3,314,000

Required:

1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

2018 2019

Receivables Turnover Ratio ___ times ___ times

Inventory Turnover Ratio ___ times ___ times

Current Ratio ___ to 1 ___ to 1

Debt to Equity Ratio ___ % ___ %

2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

2018 2019

Gross Profit Ratio ___ % ___ %

Return on Assets ___ % ___ %

Profit Margin ___ % ___ %

Asset Turnover ___ times ___ times