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This question has 2 parts. Thanks in advance for any assistance. Required information Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net
This question has 2 parts. Thanks in advance for any assistance.
Required information Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 1.780,000 200,000 58,000 616.000 2,654,000 $ 1,846,000 1,730,000 200,000 58,000 530,000 2,518,000 $ 1,782,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets! Cash $ 243,000 $ 173,000 $ 240,000 Accounts receivable 1,008,000 758,000 778,000 Inventory 1,743,000 1,373,000 1,043,000 Supplies 148,000 118,000 93,000 Long-term assets: Equipment 1,820,000 1,820,000 1,820,000 Less: Accumulated depreciation (780,000) (580,000) (380.000) Total assets $4,182,000 $3,662,000 $3,594,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 227,200 $ 160,000 $ 151,200 Interest payable 5,800 0 5,800 Income tax payable 58,000 53,000 48.000 Long-term liabilities: Notes payable 680,000 680,000 680,000 Stockholders' equity: Common stock 780,000 780,000 780,000 Retained earnings 2,431,000 1,989,000 1,929,000 Total liabilities and stockholders' equity $4,182,000 $3,662,000 $3,594,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2022 2021 times times times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio to 1 to 1 % % Required information Problem 12-6B Use ratios to analyze risk and profitability (L012-3, 12-4) (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 2022 2021 Net sales $ 12,920,000 $11,500,000 Cost of goods sold 8, 420,000 7,200,000 Gross profit 4,500,000 4,300,000 Expenses: Operating expenses 1,780,000 1,730,000 Depreciation expense 200,000 200,000 Interest expense 58,000 58,000 Income tax expense 616,000 530,000 Total expenses 2,654,000 2,518,000 Net income $ 1,846,000 $ 1,782,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 20 Accete Required information interest expense Income tax expense Total expenses Net income DUUUU 616,000 2,654,000 $ 1,846,000 , UUU 530,000 2,518,000 $ 1,782,000 2020 $ 240,000 778,000 1,043,000 93,000 THE ATHLETIC AITIC Balance Sheets December 31 2022 2021 Assets Current assets Cash $ 243,000 $ 173,000 Accounts receivable 1,000,000 758,000 Inventory 1,743,000 1,373,000 Supplies 148,000 118,000 Long-term assets: Equipment 1,820,000 1,820,000 Less: Accumulated depreciation (780,000) (580,000) Total assets $4,182,000 $3,662,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 227,200 $ 160,000 Interest payable 5,800 0 Income tax payable 58,000 53,000 Long-term liabilities: Notes payable 680,000 680,000 Stockholders' equity: Common stock 780,000 780,000 Retained earnings 2,431,000 1,989,000 Total liabilities and stockholders' equity $4,182,000 $3,662,000 1,820,000 (380,000) $3,594,000 $ 151,200 5,800 48,000 680,000 780,000 1,929,000 $3,594,000 Step by Step Solution
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