Project Requirements Financial Accounting Project Is in Chapter 12, Under B Problem P12 6B on Page 642 The Company is THE ATHLETIC ATTIC This is a hand in problem where you calculate the ratios in excel, explain what each ratio means and determine the direction of risk and profitability The project is send via atlas email to me This is an analysis type project where you tell me what you think supported by the numbers NTS Use ratios to analyze risk and profitability 1012 3, 12 4) P12 6B Income statement and balance sheet data for The Athletic Attic are provided below THE ATHLETIC ATTIC Income Statements For the years ended December 31 2021 2022 $10,400,000 SS 900 000 6,800,000 5,450,000 3,600,000 3 450,000 Net sales Cost of goods sold Gross profit Expenses Operating expenses Depreciation expense Interest expense Income tax expense 1,600,000 1 000 000 200,000 210 000 40,000 50 000 400 000 300 000 Total expenses 2 240,000 2 220 000 Net inconic $ 1,360,000 S1,230 000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets Cash $ 225 000 $ 164 000 $ 214 000 Accounts receivable 990,000 790 000 810,000 Inventory 1 725 000 1,405,000 1 075,000 Supplies 130 000 110,000 85,000 Long term assets 1 100 000 1 150 000 1 150,000 Equipment Less Accumulated depreciation (600,000) (420,000) (210,000) Total assets $3 570 000 $3 199,000 $3 124,000 Liabilities and Stockholders' Equity Current liabilities $ 175,000 $ 115,000 $ 91,000 Accounts payable 4 000 0 5,000 Interest payable 40,000 40,000 31 000 Income tax payable Long term liabilities Notes payable 500,000 600,000 600,000 Stockholders' equity Notes payable 500 000 600 000 600 000 Stockholders' equity Common stock 600,000 700,000 700,000 Retained earnings 2 251 000 1,744 000 1,697,000 Total liabilities and stockholders equity S3 520 000 S3 199 000 $3 124 000 P Required 1 Calculate the following risk ratios for 2021 and 2022 a Receivables turnover ratio b Inventory turnover ratio c Current ratio d Debt to equity ratio 2 Calculate the following profitability ratios for 2021 and 2022 a Gross profit ratio, b Return on assets c Profit margin d Assel turnover 3 Based on the ratios calculated determine whether overall risk and profitability improved from 2021 to 2022

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Project Requirements Financial Accounting Project Is in Chapter 12, Under B Problem P12 6B on Page 642  The Company is THE ATHLETIC ATTIC  This is a hand in problem where you calculate the ratios in excel, explain what each ratio means and determine the direction of risk and profitability  The project is send via atlas email to me  This is an analysis type project where you tell me what you think supported by the numbers  NTS Use ratios to analyze risk and profitability 1012 3, 12 4) P12 6B Income statement and balance sheet data for The Athletic Attic are provided below  THE ATHLETIC ATTIC Income Statements For the years ended December 31 2021 2022 $10,400,000 SS 900 000 6,800,000 5,450,000 3,600,000 3 450,000 Net sales Cost of goods sold Gross profit Expenses  Operating expenses Depreciation expense Interest expense Income tax expense 1,600,000 1 000 000 200,000 210 000 40,000 50 000 400 000 300 000 Total expenses 2 240,000 2 220 000 Net inconic $ 1,360,000 S1,230 000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets  Cash $ 225 000 $ 164 000 $ 214 000 Accounts receivable 990,000 790 000 810,000 Inventory 1 725 000 1,405,000 1 075,000 Supplies 130 000 110,000 85,000 Long term assets  1 100 000 1 150 000 1 150,000 Equipment Less  Accumulated depreciation (600,000) (420,000) (210,000) Total assets $3 570 000 $3 199,000 $3 124,000 Liabilities and Stockholders' Equity Current liabilities  $ 175,000 $ 115,000 $ 91,000 Accounts payable 4 000 0 5,000 Interest payable 40,000 40,000 31 000 Income tax payable Long term liabilities  Notes payable 500,000 600,000 600,000 Stockholders' equity  Notes payable 500 000 600 000 600 000 Stockholders' equity  Common stock 600,000 700,000 700,000 Retained earnings 2 251 000 1,744 000 1,697,000 Total liabilities and stockholders equity S3 520 000 S3 199 000 $3 124 000 P  Required  1  Calculate the following risk ratios for 2021 and 2022  a  Receivables turnover ratio  b  Inventory turnover ratio  c  Current ratio d  Debt to equity ratio 2  Calculate the following profitability ratios for 2021 and 2022  a  Gross profit ratio, b  Return on assets  c  Profit margin d  Assel turnover  3  Based on the ratios calculated determine whether overall risk and profitability improved from 2021 to 2022

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Project Requirements Financial Accounting Project Is in Chapter 12, Under B Problem P12-6B on Page 642. The Company is THE ATHLETIC ATTIC. This is a

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