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$12,920,000 $11,500,000 Cost of goods sold 8,420,000 7,200,000 Gross profit 4,500,000 4,300,000 Expenses: Operating expenses 1,780,000 1,730,000 Depreciation expense 200,000 200,000 Interest expense 58,000 58,000 Income tax expense 616,000 530,000 Total expenses 2,654,000 2,518,000 Net income$1,846,000 $1,782,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash$243,000 $173,000 $240,000 Accounts receivable 1,008,000 758,000 778,000 Inventory 1,743,000 1,373,000 1,043,000 Supplies 148,000 118,000 93,000 Long-term assets: Equipment 1,820,000 1,820,000 1,820,000 Less: Accumulated depreciation (780,000) (580,000) (380,000) Total assets$4,182,000 $3,662,000 $3,594,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$227,200 $160,000 $151,200 Interest payable 5,800 0 5,800 Income tax payable 58,000 53,000 48,000 Long-term liabilities: Notes payable 680,000 680,000 680,000 Stockholders' equity: Common stock 780,000 780,000 780,000 Retained earnings 2,431,000 1,989,000 1,929,000 Total liabilities and stockholders’ equity$4,182,000 $3,662,000 $3,594,000 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

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Answered: Calculate the following profitability…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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

THE ATHLETIC ATTIC
Balance Sheets
December 31
		2022			2021			2020
Assets
Current assets:
Cash	$	243,000		$	173,000		$	240,000
Accounts receivable		1,008,000			758,000			778,000
Inventory		1,743,000			1,373,000			1,043,000
Supplies		148,000			118,000			93,000
Long-term assets:
Equipment		1,820,000			1,820,000			1,820,000
Less: Accumulated depreciation		(780,000	)		(580,000	)		(380,000	)
Total assets	$	4,182,000		$	3,662,000		$	3,594,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	227,200		$	160,000		$	151,200
Interest payable		5,800			0			5,800
Income tax payable		58,000			53,000			48,000
Long-term liabilities:
Notes payable		680,000			680,000			680,000
Stockholders' equity:
Common stock		780,000			780,000			780,000
Retained earnings		2,431,000			1,989,000			1,929,000
Total liabilities and stockholders’ equity	$	4,182,000		$	3,662,000		$	3,594,000