Help Problem 12-68 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 $10,400,000 $8,900,000 Cost of goods sold 6,800,000 5.450,000 Gross profit 3,600,000 3,450,000 Expenses: Operating expenses 1,600,000 1,600,000 Depreciation expense 200,000 210,000 Interest expense 40,000 50,000 Income tax expense 400,000 360,000 Total expenses 2,240,000 2,220,000 Net income 5 1,360,000 $1,230,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 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 Latest Notes Diablo $225,000 $164,000 990,000 790,000 1,725,000 1.495,000 130,000 110,000 1.100.000 1,150,000 (600,000) 420.000) $3,570,000 $3, 199,000 $ 14,000 B10,000 1,075,000 85,000 1,150,000 (210,000 $3, 124,000 $ 115,000 $ $ 175,000 4.000 40,000 500.00 91,00 5.000 31.000 40,000 600.000 00.000 Saved Inventory 1,725,000 1,405,000 1,075,000 Supplies 130,000 110,000 85,000 Long-term assets: Equipment 1,100,000 1,150,000 1,150,000 Less: Accumulated depreciation (600,000) (420,000) (210,000) Total assets $3,570,000 $3,199,000 $3,124,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 175,000 $ 115,000 $ 91,000 Interest payable 4,000 0 5,000 Income tax payable 40,000 40,000 31,000 Long-term liabilities: Notes payable 500,000 600,000 600,000 Stockholders' equity: Common stock 600,000 700,000 700,000 Retained earnings 2,251,000 1,744,000 1,697,000 Total liabilities and stockholders' equity $3,570,000 $3,199,000 $3,124,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio times to 1 % times to 1 % 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 % % times times