Question: Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022

Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 2021 Net sales $19,400,000 $8,900,000 Cost of goods sold 6,800,000 5,450.000 Gross profit 3,600,000 3,450,000 Expenses: Operating expenses 1,600,000 1,600,000 Depreciation expense 200,000 210,000 Interest expense 40,000 50,000 Income tax expense 400,000 360,000 Total expenses 2,240,000 2,220,000 Net incone $ 1,360,000 $1,230,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 $ 225,000 990,000 1,725,000 130,000 $ 164,000 790,000 1,405,000 110,000 $ 214,000 810,000 1,075,000 85,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-tern assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 1,100,000 (600,000) $3,570,000 1,150,000 (420,000) $3,199,000 1,150,000 (210,000) $3, 124,000 $ $ 175,000 4,000 40,000 $ 115,000 0 40,000 91,000 5,00 31, el 500,000 600,000 600,000 600,000 2.251.800 700,000 1.744.000 700,000 1.697.900 $ 225,000 990,000 1,725,000 130,000 $ 164,000 790,000 1,405,000 110,000 $ 214,000 810,000 1,075,000 85,000 1,100,000 1,150,000 1,150,000 (600,000) (420,000) (210,000) $3,570,000 $3,199,000 $3,124,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 115,000 $ $ 175,000 4,000 40,000 91,000 5,000 31,000 40,000 500,000 600,000 600,000 600,000 700,000 700, eee 2,251,000 1,744,000 1,697,000 $3,570,000 $3,199,000 $3,124,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 times times times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio to 1 to 1 % %
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