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

Required:
1. Calculate the following risk ratios for 2015 and 2016:
a. Receivables turnover ratio.
b. Inventory turnover ratio.
c. Current ratio.
d. Debt to equity ratio.
2. Calculate the following profitability ratios for 2015 and 2016:
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 2015 to2016.

THE ATHLETIC ATTIC Income Statements For the years ended December 31 2016 2015 Net sales $10,400,000 6,800,000 3,600,000 $8,900,000 5,450,000 3,450,000 Cost of goods sold Gross proft 1,600,000 210,000 Operating expenses Depreciation expense Interest expense Income tax expense 1,600,000 200,000 40,000 400,000 240,000 S1,360,000 50,000 360,000 Total expenses 2 220,000 $1,230,000 Net income THE ATHLETIC ATTIC Balance Sheets December 31 2016 2015 2014 Assets Current assets Cash Accounts receivable Inventory Supplies S 225,000 164,000 S214,000 810,000 1,405,000 1,075,000 85,000 790,000 990,000 1,725,000 130,000 110,000 Long-term assets: 1,100,000 (600,000) 1,150,000 1,150,000 Equipment Less: Accumulated depreciation (420,000) Total assets S3,570,000 S3,199,000 S3,124,000 Liabilities and Stockholders' Current liabilities: Accounts payable Interest payable Income tax payable S 175,000 S 115,000 S91,000 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 2.251,000 1744.000 1697000 Total liabilities and stockholders equity 3,570,000 3199,000 3,124,000