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 $12,220,000 $10,750,000 Cost of goods sold 7,970,000 6,700,000 Gross profit 4,250,000 4,050,000 Expenses: Operating expenses 1,730,000 1,680,000 Depreciation 200,000 200,000 expense Interest expense 53,000 53,000 Income tax expense 556,000 480,000 Total expenses 2,539,000 2,413,000 Net income $ 1,711,000 $ 1,637,000 2021 2020 $ 168,000 753,000 1,368,000 113,000 $ 230,000 7 73,000 1,038,000 88,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 Assets Current assets: Cash $ 238,000 Accounts receivable 1,003,000 Inventory 1,738,000 Supplies 143,000 Long-term assets: Equipment 1,620,000 Less: Accumulated depreciation (730,000) Total assets $4,012,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 212,700 Interest payable 5,300 Income tax payable 53,000 Long-term liabilities: Notes payable 630,000 Stockholders' equity: Common stock 730,000 Retained earnings 2,381,000 Total liabilities and stockholders' $4,012,000 equity 1,620,000 (530,000) $3,492,000 1,620,000 (330,000) $3,419,000 $ 145,000 $ 131,700 5,300 43,000 48,000 630,000 630,000 730,000 1,939,000 $3,492,000 730,000 1,879,000 $3,419,000 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2021 14.1 times 5.6 times 12.4 to 1 24.0 % 2022 13.9 times 5.1 times 11.5 to 1 20.0 X %