Required Information Problem 12-6B Use ratlos to analyze risk and profitabllity (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 Incone Statements For the years ended December 31 2022 2021 Net sales $ie, 400, eee $8,800,eee cost of goods sold 6,800,000 5,488, een Gross profit 3,600,000 3,400,000 Expenses: Operating expenses 1,689, eee 1,550, eee Depreciation expense 280,cec 2e8,eee Interest expense 40, eee 40, eee Income tax expense 499. eee 350,000 Total expenses 2,248, ees 2,148,00 Net income $ 1,368,000 $1,268,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2e28 $ 225, eee $ 154,688 $ 284,888 990,000 748,888 760,008 1,725, eee 1,355,000 1,625, eee 130,00 182.ee 75, eee 1,100,000 1,108, eee 1,100,000 (688,888 (490,288) (200,000) $3,570,eee $3,49,808 $2,964.ee 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 abilities and stockholders equity $ 175, een 4.ee 48,888 5e8,eee $ 185.888 $ 8 35,000 500,000 81, eee 4.000 30,000 See.ee 608, eee 600,000 See.ee 2,251,880 1,889,888 1,749, ees $3,578,eee $3,049,000 $2,964,000 Problem 12.6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022 (Round your answers to 1 decimal place.) 2022 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2021 times times to 1 1% times times to 1 Required information Problem 12-6B Use ratlos 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 $19,480,000 $8,800,000 Cost of goods sold 6,980,000 5,488,888 Gross profit 3,600,000 3,488,888 Expenses : Operating expenses 1,688,eee 1,558,888 Depreciation expense 200,000 280, eee Interest expense 48,eee 40,00 Income tax expense 488,608 350,000 Total expenses 2,240.000 2,140,000 Net Income $ 1,368, see $1,260, THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2e2e $ 225,000 998,888 1,725,000 138, een $ 154, cee $ 284,888 748,eee 760, ees 1,355,880 1,025, eee 100,000 75,000 1,100,000 ( (688, 289) $3,578,888 1,188, eee (480,000 $3,049, 688 1,180,888 (288,888 $2,964,080 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and StockholdersEquity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Conson stock Retained earnings Total liabilities and stockholders' equity $ 175,600 4.800 40,000 $ 185,000 $ 3 35,000 81,000 4,000 38,00 588,eee 580, eee 500,000 600,eee 2,251,600 $3,570,000 600,000 688,888 1,899,000 1,749,000 $ $3,049,000 $2,964,000 Problem 12-6B Part 2 2 Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 % % 96 % 2022 96 % Gross profit ratio Return on assets Profit margin Asset turnover times times