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.

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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