Required information Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] 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 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 2021 $10,680,000 $9,100,000 6,980,000 5,600,000 3,700,000 3,500,000 1,620,000 1,570,000 200,000 200,000 42,000 424,000 2,286,000 42,000 370,000 2,182,000 $ 1,414,000 $1,318,000 Assets Current assets: Cash Accounts receivable THE ATHLETIC ATTIC Balance Sheets. December 31 2022 Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity 2021 2020 $ 227,000 $ 156,000 $ 208,000 992,000 742,000 762,000 1,727,000 1,357,000 1,027,000 132,000 102,000 77,000 1,180,000 1,180,000 1,180,000 (620,000) $3,638,000 (420,000) $3,117,000 (220,000) $3,034,000 Current liabilities: Accounts payable Interest payable $ 180,800 4,200 $ 111,000 $ 88,800 0 4,200 Long-term liabilities: Income tax payable Notes payable Stockholders' equity: Common stock Retained earnings 42,000 37,000 32,000 520,000 520,000 520,000 620,000 2,271,000 620,000 620,000 1,829,000 1,769,000 Total liabilities and stockholders' equity $3,638,000 $3,117,000 $3,034,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2021 2022 times times times times to 1 to 1 % % Problem 12-6B Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio 14.3 % % Return on assets % % Profit margin % % Asset turnover times times