Problem 12-5B Calculate profitability ratios (L012-4)

Problem 12-5B Calculate profitability ratios (L012-4) 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 $8,850,000 Cost of goods sold 5,425,000 Gross profit 3,425,000 Expenses: Operating expenses $1,575,000 Depreciation expense 205,000 Interest expense 45,000 Income tax expense 355,000 Total expenses 2,180,000 Net income $1,245,000 2020 $ 209,000 785,000 1,050,000 80,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 Assets Current assets: Cash $ 159,900 Accounts receivable 765,000 Inventory 1,380,000 Supplies 105,000 Long-term assets: Equipment 1,125,000 Less: Accumulated depreciation (410,000) Total assets $3,124,000 Liabilities and stockholders' Equity Current liabilities: Accounts payable $ 110,000 Interest payable Income tax payable 37,500 Long-term liabilities: Notes payable 550,000 Stockholders' equity: Common stock 650,000 Retained earnings 1,776,500 Total liabilities and stockholders' equity $3,124,000 1,125,000 (205,000) $3,044,000 $ 86,000 4,500 30,500 550,000 650,000 1,723,000 $3,044,000 Earnings per share for the year ended December 31, 2021, are $1.31. The closing stock price on Dece! Required: 550,000 Long-term liabilities: Notes payable 550,000 stockholders' equity: Common stock 650,000 Retained earnings 1,776,500 Total liabilities and stockholders' equity $3,124,000 650,000 1,723,000 $3,044,000 Earnings per share for the year ended December 31, 2021, are $1.31. The closing stock price on December 31, 2021. is $2192. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) Profitability Ratios 1. Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price earnings ratio % times % times