Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTICIncome StatementsFor the Years Ended December 31 20252024Net sales$ 13,200,000$ 11,800,000Cost of goods sold8,600,0007,400,000Gross profit4,600,0004,400,000Expenses: Operating expenses1,800,0001,750,000Depreciation expense200,000200,000Interest expense60,00060,000Income tax expense640,000550,000Total expenses2,700,0002,560,000Net income$ 1,900,000$ 1,840,000 THE ATHLETIC ATTICBalance SheetsDecember 31 202520242023Assets Current assets: Cash$ 245,000$ 175,000$ 244,000Accounts receivable1,010,000760,000780,000Inventory1,745,0001,375,0001,045,000Supplies150,000120,00095,000Long-term assets: Equipment1,900,0001,900,0001,900,000Less: Accumulated depreciation(800,000)(600,000)(400,000)Total assets$ 4,250,000$ 3,730,000$ 3,664,000Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 233,000$ 166,000$ 159,000Interest payable6,00006,000Income tax payable60,00055,00050,000Long-term liabilities: Notes payable700,000700,000700,000Stockholders' equity: Common stock800,000800,000800,000Retained earnings2,451,0002,009,0001,949,000Total liabilities and stockholders’ equity$ 4,250,000$ 3,730,000$ 3,664,000 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)Gross profit ratioReturn on assetsProfit marginAsset turnover2024%%%times2025%%%times

Return on plan assets indicates the efficiency of the entity that how assets have been used to…

Answered: 2. Calculate the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Income statement and balance sheet data for The Athletic Attic are provided below.

	2025	2024
THE ATHLETIC ATTIC
Income Statements
For the Years Ended December 31
Net sales	$ 13,200,000	$ 11,800,000
Cost of goods sold	8,600,000	7,400,000
Gross profit	4,600,000	4,400,000
Expenses:
Operating expenses	1,800,000	1,750,000
Depreciation expense	200,000	200,000
Interest expense	60,000	60,000
Income tax expense	640,000	550,000
Total expenses	2,700,000	2,560,000
Net income	$ 1,900,000	$ 1,840,000

	2025	2024	2023
THE ATHLETIC ATTIC
Balance Sheets
December 31
Assets
Current assets:
Cash	$ 245,000	$ 175,000	$ 244,000
Accounts receivable	1,010,000	760,000	780,000
Inventory	1,745,000	1,375,000	1,045,000
Supplies	150,000	120,000	95,000
Long-term assets:
Equipment	1,900,000	1,900,000	1,900,000
Less: Accumulated depreciation	(800,000)	(600,000)	(400,000)
Total assets	$ 4,250,000	$ 3,730,000	$ 3,664,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 233,000	$ 166,000	$ 159,000
Interest payable	6,000	0	6,000
Income tax payable	60,000	55,000	50,000
Long-term liabilities:
Notes payable	700,000	700,000	700,000
Stockholders' equity:
Common stock	800,000	800,000	800,000
Retained earnings	2,451,000	2,009,000	1,949,000
Total liabilities and stockholders’ equity	$ 4,250,000	$ 3,730,000	$ 3,664,000

2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
Gross profit ratio
Return on assets
Profit margin
Asset turnover
2024
%
%
%
times
2025
%
%
%
times

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions