Problem 12-68 Use ratios to analyze risk and profitability (L012-3, 12-4) [The following information applies to the questions displayed below.) Income statement and balance sheet data for The Athletic Attic are provided below. ho THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 Net sales $13,200,000 Cost of goods sold 8,600,000 Gross profit 4,600,000 Expenses: Operating expenses 1,800,000 Depreciation expense 200,000 Interest expense 60,000 Income tax expense 640,000 Total expenses 2,780,000 Net income $ 1,900,000 2021 $11,800,000 7,400,000 4,400,000 1,750,000 200,000 60,000 550.800 2,560,000 $ 1,840,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets! Cash Accounts receivable Inventory Supplies Long-term assets: Equipment $ 245,000 1,010,000 1,745,000 150,000 $ 175,000 760,000 1,375,000 120,000 $ 244,000 780,000 1,045,000 95,000 1,900,000 1,900,000 1,980,000 Prev 6 7 of 7 !!! Next > 150, 99, 1,900,000 (800,000) $4,250,000 1,900,000 (600,000) $3,730,000 1,900,000 (400,000) $3,664,000 Suppiles 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 $ 159,000 6,000 50,000 $ 233,000 $ 166,000 6,000 e 60,000 55,000 700,000 700,000 300,000 800,000 2,451,000 2,009,000 $4,250,000 $3,750,000 700,000 800,000 1,949,000 $3,664,000 Problem 12-6B Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2022 Gross profit ratio Return on assets Profit margin Asset turnover 2021 % % % times % % % times