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 $12,780,000 $11,350,000
Cost of goods sold 8,330,000 7,100,000

Gross profit 4,450,000 4,250,000
Expenses:
Operating expenses 1,770,000 1,720,000
Depreciation expense 200,000 200,000
Interest expense 57,000 57,000
Income tax expense 604,000 520,000

Total expenses 2,631,000 2,497,000

Net income $1,819,000 $1,753,000

THE ATHLETIC ATTIC Balance Sheets December 31
2019 2018 2017
Assets
Current assets:
Cash $ 242,000 $ 172,000 $ 238,000
Accounts receivable 1,007,000 757,000 777,000
Inventory 1,742,000 1,372,000 1,042,000
Supplies 147,000 117,000 92,000
Long-term assets:
Equipment 1,780,000 1,780,000 1,780,000
Less: Accumulated depreciation (770,000) (570,000) (370,000)

Total assets $4,148,000 $3,628,000 $3,559,000

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 224,300 $ 157,000 $ 147,300
Interest payable 5,700 0 5,700
Income tax payable 57,000 52,000 47,000
Long-term liabilities:
Notes payable 670,000 670,000 670,000
Stockholders' equity:
Common stock 770,000 770,000 770,000
Retained earnings 2,421,000 1,979,000 1,919,000

Total liabilities and stockholders equity $4,148,000 $3,628,000 $3,559,000

1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

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

2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

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

2018 2019 times times Receivables turnover ratio Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio 2018 2019 Gross profit ratio Return on assets % Profit margin % Asset turnover times times

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