Using Ratios to Analyze Risk and Return 

Required:
1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

[The following information applies to the questions below.]

The following is the income statement and balance sheet data for The Athletic Attic.

THE ATHLETIC PENTHOUSE
Income Statements
For the years ended December 31
		2022			2021
net sales	ps	12,780,000		ps	11,350,000
cost of goods sold		8,330,000			7,100,000
Gross profit		4.450.000			4,250,000
Bills:
operating expenses		1,770,000			1,720,000
depreciation expense		200,000			200,000
Interest expenses		57,000			57,000
Income from tax expenses		604,000			520.000
Total expenses		2.631.000			2.497.000
Net Income	ps	1,819,000		ps	1,753,000

THE ATHLETIC PENTHOUSE
Balances
December 31
		2022				2021				2020
Assets
Current assets:
Money	ps	242,000			ps	172,000			ps	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	ps	4.148.000			ps	3.628.000			ps	3.559.000
Liabilities and Equity
current liabilities:
Accounts payable	ps	224,300			ps	157,000			ps	147,300
interest to pay		5,700				0				5,700
Income tax payable		57,000				52,000				47,000
Long term passives:
Pay		670.000				670.000				670.000
Equity:
Common actions		770.000				770.000				770.000
Retained earnings		2.421.000				1,979,000				1,919,000
Total liabilities and stockholders' equity	ps	4.148.000			ps	3.628.000			ps	3.559.000

Problem 12-6B Part 1

Required:
1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

	2021		2022
Accounts Receivable Turnover Ratio		times		times
Inventory Turnover Rate		times		times
Radio actual		a 1		a 1
debt ratio		%		%

2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

	2021		2022
gross profit ratio		%		%
return on assets		%		%
Profit margin		%		%
asset turnover		times		times