{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-14T00:06:14-04:00", "answer_date": "2024-09-14 00:06:14", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10721036", "url": "\/study-help\/questions\/required-information-problem-126b-use-ratios-to-analyze-risk-and-10721036", "question_creation_date_js": "2024-09-14T00:06:14-04:00", "question_creation_date": "Sep 14, 2024 12:06 AM", "meta_title": "[Solved] Required information Problem 12-6B Use ra | SolutionInn", "meta_description": "Answer of - Required information Problem 12-6B Use ratios to analyze risk and profitability (L012-3, 12-4) [The following informat | SolutionInn", "meta_keywords": "required,information,problem,12-6b,ratios,analyze,risk,profitability,l012-3,12-4,applies,questions", "question_title_h1": "Required information Problem 12-6B Use ratios to analyze risk and profitability (L012-3, 12-4) [The following information applies to the questions displayed below.) Income statement and", "question_title": "Required information Problem 12-6B Use ratios to analyze risk and profitability (L012-3,", "question_title_for_js_snippet": "Required information Problem 12 6B 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 THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 2021 Net sales $10,680,000 $9,100,000 Cost of goods sold 6,980,000 5,600,000 Gross profit 3,700,000 3,500,000 Expenses Operating expenses 1,620,000 1,570,000 Depreciation expense 200,000 200,000 Interest expense 42,000 42,000 Income tax expense 424,000 370,000 Total expenses 2,286,000 2,182,000 Net income $ 1,414,000 $1,318,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets Cash $ 227,000 $ 156,000 $ 208,000 Accounts receivable 992,000 742,000 762,000 Inventory 1,727,000 1,357,000 1,027,000 Supplies 132,000 102,000 77,000 Long term assets Equipment 1,180,000 1,180,000 1,180,000 Less Accumulated depreciation (620,000) (420,000) (220,000) Total assets $3,638,000 $3,117,000 $3,034,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 180,800 $ 111,000 $ 88,800 Interest payable 4,200 0 4,200 Income tax payable 42,004 37,000 Long term Liabilities 32,000 Notes payable 520,000 Stockholders' equity 520,000 520,000 Common stock 620,000 Retained earnings 620,000 620,000 2,271,000 1,829,000 Total liabilities and stockholders' equity $3,638,000 1 769,000 $3,117,000 $3,034,000 Problem 12 6B Part 2 2 Calculate the following profitability ratios for 2021 and 2022 (Round your answers to 1 decimal place ) 2022 2021 Gross profit ratio Return on assets Profit margin Asset turnover times times", "question_description": "
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\"image<\/div> <\/div> Required information Problem 12-6B 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. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 2021 Net sales $10,680,000 $9,100,000 Cost of goods sold 6,980,000 5,600,000 Gross profit 3,700,000 3,500,000 Expenses: Operating expenses 1,620,000 1,570,000 Depreciation expense 200,000 200,000 Interest expense 42,000 42,000 Income tax expense 424,000 370,000 Total expenses 2,286,000 2,182,000 Net income $ 1,414,000 $1,318,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 227,000 $ 156,000 $ 208,000 Accounts receivable 992,000 742,000 762,000 Inventory 1,727,000 1,357,000 1,027,000 Supplies 132,000 102,000 77,000 Long-term assets: Equipment 1,180,000 1,180,000 1,180,000 Less: Accumulated depreciation (620,000) (420,000) (220,000) Total assets $3,638,000 $3,117,000 $3,034,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 180,800 $ 111,000 $ 88,800 Interest payable 4,200 0 4,200 Income tax payable 42,004 37,000 Long-term Liabilities: 32,000 Notes payable 520,000 Stockholders' equity: 520,000 520,000 Common stock 620,000 Retained earnings 620,000 620,000 2,271,000 1,829,000 Total liabilities and stockholders' equity $3,638,000 1.769,000 $3,117,000 $3,034,000 Problem 12-6B Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2022 % 2021 % % % Gross profit ratio Return on assets Profit margin Asset turnover % % times times", "transcribed_text": "", "related_book": { "title": "Accounting", "isbn": "978-0324662962", "edition": "23rd Edition", "authors": "Jonathan E. Duchac, James M. Reeve, Carl S. 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