The following income statement and balance sheet for The Athletic Attic are provided.

Required:
Assuming that all sales were on account, calculate the following risk ratios for 2012:
1. Receivables turnover ratio.
2. Average collection period.
3. Inventory turnover ratio.
4. Average days in inventory.
5. Current ratio.
6. Acid-test ratio.
7. Debt to equity ratio.
8. Times interest earned ratio.

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THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2012 Sales revenue Cost of goods sold $8,800,000 5,400,000 3,400,000 Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense $1,550,000 200,000 40,000 350,000 Total expenses 2,140,000 $1,260,000 Net income THE ATHLETIC ATTIC Balance Sheet December 31 2012 2011 Assets Current assets: Cash Accounts receivable Inventory Supplies $ 154,000 740,000 1,355,000 100,000 $ 204,000 760,000 1,025,000 75,000 Long-term assets: Equipment Less: Accumulated depreciation 1,100,000 200,000) $2,964,000 1,100,000 400 Total assets $3,049,000 Liabilities and Stockholders' Equi Current liabilities: Accounts payable Interest payable $ 105,000 0 35,000 $ 81,000 4,000 30,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 500,000 500,000 600,000 600,000 1749,000 $2,964,000 Retained earnings 1809,000 $3,049,000 Total liabilities and stockholders' equity