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Income statement and balance sheet data for The Athletic Attic are provided below.

THE ATHLETIC ATTIC

Income Statements

For the Years Ended December $31$

$20252024$

Net sales $ $10,400,000$ $ $8,900,000$

Cost of goods sold $6,800,0005,450,000$

Gross profit $3,600,0003,450,000$

Expenses:

Operating expenses $1,600,0001,600,000$

Depreciation expense $200,000210,000$

Interest expense $40,00050,000$

Income tax expense $400,000360,000$

Total expenses $2,240,0002,220,000$

Net income $ $1,360,000$ $ $1,230,000$

THE ATHLETIC ATTIC

Balance Sheets

December $31$

$202520242023$

Assets

Current assets:

Cash $ $225,000$ $ $164,000$ $ $214,000$

Accounts receivable $990,000790,000810,000$

Inventory $1,725,0001,405,0001,075,000$

Supplies $130,000110,00085,000$

Long$-$term assets:

Equipment $1,100,0001,150,0001,150,000$

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:

Accounts payable $ $175,000$ $ $115,000$ $ $91,000$

Interest payable $4,00005,000$

Income tax payable $40,00040,00031,000$

Long$-$term liabilities:

Notes payable $500,000600,000600,000$

Stockholders' equity:

Common stock $600,000700,000700,000$

Retained earnings $2,251,0001,744,0001,697,000$

Total liabilities and stockholders$$ equity $ $3,570,000$ $ $3,199,000$ $ $3,124,000$

$2.$ Calculate the following profitability ratios for $2024$ and $2025$: $($Round your answers to $1$ decimal place.$)$

Gross profit Ratio :

Return on Assets :

Profit Margin :

Asset Turnover :