Required information Skip to question [The following information applies to the questions displayed below.] Income statement and
Question:
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[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 | ||
2025 | 2024 | |
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 | |||
2025 | 2024 | 2023 | |
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 |
2.Calculate the following profitability ratios for 2024 and 2025:(Round your answers to 1 decimal place.)
2024 2025
Gross profit ratio ______?______ %. ______?______ %
return on assets _______?______ % ________?______ %
profit margin _______?_______ %. ________?_______ %
asset turnover ______?_______ times _______?_______ times
(what are the question marks?)
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann