Question
Required information [The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below.
Required information [The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. Net sales THE ATHLETIC ATTIC Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 2024 2025 $ 12,920,000 8,420,000 4,500,000 $ 11,500,000 7,200,000 4,300,000 1,780,000 1,730,000 200,000 200,000 58,000 58,000 530,000 2,518,000 616,000 2,654,000 $ 1,846,000 $ 1,782,000 THE ATHLETIC ATTIC Balance Sheets December 31 2025 2024 2023 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 $ 243,000 1,008,000 1,743,000 148,000 1,820,000 (780,000) $ 4,182,000 $ 173,000 758,000 1,373,000 118,000 1,820,000 (580,000) $ 3,662,000 $ 240,000 778,000 1,043,000 93,000 1,820,000 (380,000) $ 3,594,000 $ 151,200 Interest payable $ 227,200 5,800 $ 160,000 0 5,800 Income tax payable 58,000 53,000 48,000 Long-term liabilities: Notes payable 680,000 680,000 680,000 Stockholders' equity: Common stock Retained earnings 780,000 2,431,000 780,000 1,989,000 780,000 1,929,000 Total liabilities and stockholders' equity $ 4,182,000 $ 3,662,000 $ 3,594,000 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times
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