Data for The Athletic Attic are provided in P12-4B. Earnings per share for the year ended December 31, 2012, are $1.26. The closing stock price on December 31, 2012, is $21.42.
In P12-4B

Required:
Calculate the following profitability ratios for 2012:
1. Gross profit ratio.
2. Return on assets.
3. Profit margin.
4. Asset turnover.
5. Return on equity.
6. Price-earnings ratio.

THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2012 Sales revenue Cost of goods sold $8,800,000 5,400,000 3,400,000 Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense $1,550,000 200,000 40,000 350,000 Total expenses 2,140,000 $1,260,000 Net income