Required information [The following information applies to the questions displayed below.) Income statement and balance sheet data for The Athletic Attic are provided below. 2031 $10,000,000 6.200.000 3,800,000 THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 Net sales $11,520,000 Cost of goods sold 2,520,000 Gross profit 4,000,000 Expenses: Operating expenses 1.680,000 Depreciation expense 200,000 Interest expense 48,000 Income tax expense 496,000 Total expenses 2.424.000 Net Income $ 1,576,000 1,630,000 200,000 48,000 430,000 2,300,000 $ 1.492.000 THE ATHLETIC ATTIC Balance Sheets nereber 31 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 $ 233,000 998,000 1,733,000 138,000 $ 162, eee 748,888 1,363, eee 108,000 $ 220,000 768,000 1,033,000 83,000 1,420,000 (680,000 $3,842,000 1,420.000 (480,000) $3,321,000 1,420,000 (280.000) $3,244,000 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 $ 129,000 $ 198,200 4,800 48,000 $ 112,200 4,800 35,00 43,000 580,000 580,000 580,000 680,000 2.331,000 53,842,000 680,000 1.889.00 $3,321,000 680,000 1,829,000 $3,244,600 ,- Sucknolders equity: Common stock Retained earnings Total liabilities and stockholders! equity 680,000 2,331,000 $3,842,000 680,000 1,889,000 $3,321,000 680,000 1,829,00 53,244,000 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 % Gross profit ratio Return on assets Profit margin Asset turnover % % % 95 9 times times