Data for The Athletic Attic are provided in P12–4B. Earnings per share for the year ended December 31, 2021, are $1.36. The closing stock price on December 31, 2021, is $22.42.

Required:

Calculate the following profitability ratios for 2021:

1. Gross profit ratio.

2. Return on assets.

3. Profit margin.

4. Asset turnover.

5. Return on equity.

6. Price-earnings ratio.

P12–4B

The following income statement and balance sheets for The Athletic Attic are provided.

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THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,900,000 Cost of goods sold 5,450,000 Gross profit 3,450,000 Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000 $1,230,000 Net income