Income statement and balance sheet data for The Athletic Attic are provided below.

Required:
1. Calculate the following risk ratios for 2024 and 2025:
a. Receivables turnover ratio.
b. Inventory turnover ratio. 

c. Current ratio.

d. Debt to equity ratio.
2. Calculate the following profitability ratios for 2024 and 2025:
a. Gross profit ratio.
b. Return on assets. 

c. Profit margin.

d. Asset turnover.
3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2024 to 2025.

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Net sales Cost of goods sold Gross profit Expenses: THE ATHLETIC ATTIC Income Statements For the years ended December 31 2025 2024 $10,400,000 $8,900,000 6,800,000 5,450,000 3,600,000 3,450,000 Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 1,600,000 200,000 40,000 400,000 2,240,000 2,220,000 $1,360,000 $1,230,000 1,600,000 210,000 50,000 360,000