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			$	8,800,000
Cost of goods sold				5,400,000
Gross profit				3,400,000
Expenses:
Operating expenses	$	1,550,000
Depreciation expense		200,000
Interest expense		40,000
Income tax expense		350,000
Total expenses				2,140,000
Net income			$	1,260,000

THE ATHLETIC ATTIC
Balance Sheets
December 31
		2021				2020
Assets
Current assets:
Cash	$	154,000			$	204,000
Accounts receivable		740,000				760,000
Inventory		1,355,000				1,025,000
Supplies		100,000				75,000
Long-term assets:
Equipment		1,100,000				1,100,000
Less: Accumulated depreciation		(400,000	)			(200,000	)
Total assets	$	3,049,000			$	2,964,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	105,000			$	81,000
Interest payable		0				4,000
Income tax payable		35,000				30,000
Long-term liabilities:
Notes payable		500,000				500,000
Stockholders' equity:
Common stock		600,000				600,000
Retained earnings		1,809,000				1,749,000
Total liabilities and stockholders equity	$	3,049,000			$	2,964,000

Earnings per share for the year ended December 31, 2021, are $1.26. The closing stock price on December 31, 2021, is $21.42. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.)

5. Return on Equity

6. Price-earnings Ratio