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. 2021 $11,650, eee 7,300,eee 4,350, eee THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 Net sales $13,060,000 Cost of goods sold 8,510, eee Gross profit 4,550,000 Expenses: Operating expenses 1,798,888 Depreciation expense 200, eee Interest expense 59,880 Income tax expense 628,000 Total expenses 2,677,000 Net income $ 1,873,000 1,740,000 200, eee 59,000 540,000 2,539,800 $ 1,811, see THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 $ 244,888 1,899, eee 1,744,00 149, eee $ 174,000 759, eee 1,374,00 119, eee $ 242,800 779, eee 1,644, eee 94, eee 1,860, eee (790,880) $4,216,880 1,860, eee (590, 880) $3,696,000 1,868,888 (390, eee) $3,629,800 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 $ 163, see $ 230, 100 5,980 59,880 $ 155, 100 5,980 49,888 54,880 690, eee 690, eee 698,888 790,880 2.441,000 $4,216,eee 790, eee 1,999,000 $3,696,000 790,000 1,939,80 $3,629,800 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 times times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio times to 1 96 to 1 96 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 $13, 660, eee $11,650, eee Cost of goods sold 8,51e, eee 7,300,eee Gross profit 4,550,880 4,350,888 Expenses: Operating expenses 1,790, eee 1,740, eee Depreciation expense 200, eee 200,000 Interest expense 59,880 59,880 Income tax expense 628,000 540,80 Total expenses 2,677,000 2,539, eee Net income $ 1,873, eee $ 1,811,800 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 $ 244,00 1, e89, eee 1,744,000 149, eee $ 174, eee 759,000 1,374, eee 119, eee $ 242,800 779, eee 1,644, eee 94,80 1,860,000 (790,000) $4,216,880 1,860, eee (590,000) $3,696,888 1,860, eee (390, 980) $3,629,800 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 $ 230, 180 5,980 59,880 $ 163,800 @ 54,888 $ 155, 180 5,980 49,00 690, eee 690,000 690,eee 790, eee 2,441,eee $4,216,eee 790,000 1,999,000 $3,696,000 790, eee 1,939, eee $3,629,eee Problem 12-6B Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 % 96 96 96 Gross profit ratio Return on assets Profit margin Asset turnover 96 times times
