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 $8,760,000 Cost of goods sold 5,380,000 Gross profit 3,380,000 Expenses: Operating expenses $1,530,000 Depreciation expense 196,000 Interest expense 36,000 Income tax expense 346,000 Total expenses 2,108,000 Net income $1,272,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 $ 150,000 720,000 1,335,000 96,000 $ 200,000 740,000 1,885,000 71,000 1,000,000 (392,000) $2,989,000 1,680,000 (196,000) $2,900,000 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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 101,000 77,000 3,600 29,600 33,000 460,000 460,000 560,000 1,835,000 $2,989,000 560,000 1,769,800 $2,900,000 Earnings per share for the year ended December 31, 2021, are $1.22 The closing stock price on December 31, 2021, is $21.02 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-earings ratio Times times