Problem 12-4B Calculate risk ratios (LO12-3) The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,550,000 200,000 40,000 350,000 $8,800,000 5,400,000 3,400,000 2,140,000 $1,260,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 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 $ 154,000 740,000 1,355,000 100,000 1,100,000 (400,000) $3,049,000 $ 204,000 760,000 1,025,000 75,000 1,100,000 (200,000) $2,964,000 $ 105,000 0 35,000 $ 81,000 4,000 30,000 500,000 500,000 Stockholders' equity: Common stock Retained earnings 600,000 1,809,000 600,000 1,749,000 Total liabilities and stockholders' equity $3,049,000 $2,964,000 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your intermediate and final answers to 1 decimal place.) Answer is complete but not entirely correct. Risk Ratios 1. Receivables turnover ratio 11.2 times 2. Average collection period 365.0 days 3. Inventory turnover ratio 4.4 times 4. Average days in inventory 82.5 days 5. Current ratio 16.1 to 1 6. Acid-test ratio 6.2 to 1 7. Debt to equity ratio 0.3% 8. Times interest earned ratio 34.3 times