Use ratios to and profieability (1012-3 12-4) analyze risk P12-6B Income statement and balance sheet data for The Athletic Attic are provided below THE ATHLETIC ATTIC Income Statements For the years ended December 31 2019 2018 $10,400,000 $8,900,000 Net sales Cost of goods sold 6,800,000 450,000 3,600,000 3,450,000 Gross proft Expenses 1,600.000 1,600,000 200,000 210,000 50,000 360,000 40,000 2,220,000 Operating expenses Depreciation expense Interest expense Income tax expense 40,000 400,000 Total expenses Net income THE ATHLETIC ATTIC Balance Sheets December 31 2018 2017 2019 Assets Current assets: $ 225,000 $ 164,000 $ 214.000 790.000 810.000 1,725,000 1,405,000 1,075,000 85,000 Cash Accounts receivable Inventory 990,000 130,000 110,000 Long-term assets: Equipment Less: Accumulated depreciation 1,100,000 .150,000 1,150,000 000) (420,000) (210,000) 3,124,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $ 175,000 $ 115,000 $ 91,000 5,000 31,000 4,000 40,000 500,000 600,000 40,000 600,000 700,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock Retained earnings 700,000 2,251000 1,744,000 1697000 Total liabilities and stockholders' equity $3,570,000 $3,199,000 $3.124,000 $1,887,112 $237 75 50,000m Financial Statement Analysis CHAPTER 12 Required 1. Calculate the following risk ratios for 2018 and 2019: a. Receivables turnover ratio. b. Inventory turnover ratio. c. Current ratio. d. Debt to equity ratio. 2. Calculate the following profitability ratios for 2018 and 2019: a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover