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

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

Total expenses 2,677,000 2,539,000

Net income $1,873,000 $1,811,000

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)

Total assets $4,216,000 $3,696,000 $3,629,000

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

Total liabilities and stockholders equity $4,216,000 $3,696,000 $3,629,000

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

below. THE ATHLETIC ATTIC Income Statements For the years ended December 31

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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