Required information [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 Net sales Cost of goods sold Gross profit Expenses: Operating expenses 2022 2021 $12,080,000 $10,600,000 7,880,000 6,600,000 4,200,000 4,000,000 1,720,000 1,670,000 200,000 200,000 52,000 Depreciation expense Interest expense Income tax expense Total expenses Net income 544,000 2,516,000 $ 1,684,000 52,000 470,000 2,392,000 $ 1,608,000 Assets Current assets: THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Cash Accounts receivable $ 237,000 $ 167,000 $ 228,000 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: 1,002,000 1,737,000 752,000 1,367,000 772,000 1,037,000 142,000 112,000 87,000 1,580,000 1,580,000 1,580,000 (720,000) (520,000) (320,000) $3,978,000 $3,458,000 $3,384,000 $ 209,800 $ 142,000 $ 127,800 5,200 0 5,200 52,000 47,000 42,000 620,000 620,000 620,000 Common stock 720,000 720,000 720,000 Retained earnings 2,371,000 1,929,000 1,869,000 Total liabilities and stockholders' equity $3,978,000 $3,458,000 $3,384,000 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio 37.7 % 34.8 % Return on assets 23.5% % Profit margin % % Asset turnover times times