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The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021

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The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,790,000 Cost of goods sold 5,395,000 Gross profit 3,395,000 Expenses : Operating expenses $1,545,000 Depreciation expense 199,000 Interest expense 39,000 Income tax expense 349,000 Total expenses 2,132,000 Net income $1,263,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 $ 153,000 735,000 1,350,000 99,000 $ 203,000 755,000 1,020,000 74,000 I 1,095,000 (199,000) $2,948,000 1,095,000 (398,000) $3,034,000 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 $ $ 104,000 0 34,500 80,000 3,900 29,900 490,000 490,000 590,000 1,815,500 $3,034,000 590,000 1,754,200 $2,948,000 1,350,000 99,000 1,020,000 74,000 1,095,000 (398,000) $3,034,000 1,095,000 (199,000) $2,948,000 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: Common stock Retained earnings Total Habilities and stockholders' equity $ 104,000 $ 80,000 3,900 29,900 34,500 490,000 490,000 590,000 1,815,500 $3,034,000 590,000 1,754,200 $2,948,000 Required: Assuming that all sales were on account, calculate the following risk ratlos for 2021. (Use 365 days a year. Round your intermediate and final answers to 1 decimal place.) Risk Ratios 1. Receivables tumover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8 Times interest earned ratio 11.8 times 30.9 days 4.6 times 160,0 days 19.7 to 1 to 1 % times

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