Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 times 2022 times times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio to 1 to 1 % % Required information Problem 12-6B Use ratios to analyze risk and profitability (L012-3, 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 2021 Net sales $10,680,000 $9,100,000 Cost of goods sold 6,980,000 5,600,000 Gross profit 3,700,000 3,500,000 Expenses: Operating expenses 1,620,000 1,570,000 Depreciation expense 200,000 200,000 Interest expense 42,000 42,000 Income tax expense 424,000 370,000 Total expenses 2,286,000 2,182,000 Net income $ 1,414,000 $1,318,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 $ 227,000 $ 156,098 $ 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) (420,000) (220,000) $3,638,000 $3,117,000 $3,034,000 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ $ 180,800 4,200 42,000 $ 111,000 37,000 88,800 4,200 32,000 520,000 520,000 620,000 2,271,000 $3,638,000 520,000 620,000 1,829,880 $3,117,000 620,000 1,769,000 $3,034,000