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 2019
Income statement and balance sheet data for The Athletic Attic are provided below.
| THE ATHLETIC ATTIC Income Statements For the years ended December 31 | ||
| 2019 | 2018 | |
| Net sales | $13,060,000 | $11,650,000 |
| Cost of goods sold | 8,510,000 | 7,300,000 |
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| Gross profit | 4,550,000 | 4,350,000 |
| Expenses: | ||
| Operating expenses | 1,790,000 | 1,740,000 |
| Depreciation expense | 200,000 | 200,000 |
| Interest expense | 59,000 | 59,000 |
| Income tax expense | 628,000 | 540,000 |
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| Total expenses | 2,677,000 | 2,539,000 |
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| Net income | $1,873,000 | $1,811,000 |
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| THE ATHLETIC ATTIC Balance Sheets December 31 | |||
| 2019 | 2018 | 2017 | |
| Assets | |||
| Current assets: | |||
| Cash | $ 244,000 | $ 174,000 | $ 242,000 |
| Accounts receivable | 1,009,000 | 759,000 | 779,000 |
| Inventory | 1,744,000 | 1,374,000 | 1,044,000 |
| Supplies | 149,000 | 119,000 | 94,000 |
| Long-term assets: | |||
| Equipment | 1,860,000 | 1,860,000 | 1,860,000 |
| Less: Accumulated depreciation | (790,000) | (590,000) | (390,000) |
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| Total assets | $4,216,000 | $3,696,000 | $3,629,000 |
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| Liabilities and Stockholders' Equity | |||
| Current liabilities: | |||
| Accounts payable | $ 230,100 | $ 163,000 | $ 155,100 |
| Interest payable | 5,900 | 0 | 5,900 |
| Income tax payable | 59,000 | 54,000 | 49,000 |
| Long-term liabilities: | |||
| Notes payable | 690,000 | 690,000 | 690,000 |
| Stockholders' equity: | |||
| Common stock | 790,000 | 790,000 | 790,000 |
| Retained earnings | 2,441,000 | 1,999,000 | 1,939,000 |
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| Total liabilities and stockholders equity | $4,216,000 | $3,696,000 | $3,629,000 |
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Required: 1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.) 2018 2019 times times Receivables turnover ratio times times Inventory turnover ratio to 1 to 1 Current ratio % Debt to equity ratio 2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.) 2018 2019 Gross profit ratio Return on assets Profit margin % times Asset turnover times
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