Problem 12-5B Calculate profitability ratios (LO12-4) 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 $8,900,000 Cost of goods sold 5,450,000 Gross profit 3,450,000 Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000 Net income $1,230,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 $ 164,000 790,000 1,405,000 110,000 $ 214,000 810,000 1,075,000 85,000 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 Starbhnldorclannity. 1,150,000 (420,000) $3,199,000 1,150,000 (210,000) $3,124,000 $ $ 115,000 0 40,000 91,000 5,000 31,000 600,000 600,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 $ 164,000 790,000 1,405,000 110,000 $ 214,000 810,000 1,075,000 85,000 1,150,000 (420,000) $3,199,000 1,150,000 (210,000) $3, 124,000 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 $ 115,000 $ 91,000 5,000 31,000 40,000 600,000 600,000 700,000 1,744,000 $3,199,000 700,000 1,697,000 $3, 124,000 Earnings per share for the year ended December 31, 2021, are $1.36. The closing stock price on December 31, 2021, Is $22.42. 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. Assol turnover 5. Return on equity 6. Price-eamings ratio % % % times % times