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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
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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