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 $11,240,000 $9,700,000 Cost of goods sold 7,340,000 6,000,000 Gross profit 3,900,000 3,700,000 Expenses: Operating expenses 1,660,000 1,610,000 Depreciation expense 200,000 200,000 Interest expense 46,000 46,000 Income tax expense 472,000 410,000 Total expenses 2,378,000 2,266,000 Net income $1,522,000 $1,434,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $231,000 $160,000 $216,000 Accounts receivable 996,000 746,000 766,000 Inventory 1,731,000 1,361,000 1,031,000 Supplies 136,000 106,000 81,000 Long-term assets: Equipment 1,340,000 1,340,000 1,340,000 Less: Accumulated depreciation (660,000) (460,000) (260,000) Total assets 3,774,000 $3,253,000 $3,174,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $192,400 $123,000 $104,400 Interest payable 4,600 0 4,600 Income tax payable 46,000 41,000 36,000 Long-term liabilities: Notes payable 560,000 560,000 560,000 Stockholders' equity: Common stock 660,000 660,000 660,000 Retained earnings 2,311,000 1,869,000 1,809,000 Total liabilities and stockholders’ equity $3,774,000 $3,253,000 $3,174,000 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio % %
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 $11,240,000 $9,700,000 Cost of goods sold 7,340,000 6,000,000 Gross profit 3,900,000 3,700,000 Expenses: Operating expenses 1,660,000 1,610,000 Depreciation expense 200,000 200,000 Interest expense 46,000 46,000 Income tax expense 472,000 410,000 Total expenses 2,378,000 2,266,000 Net income $1,522,000 $1,434,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $231,000 $160,000 $216,000 Accounts receivable 996,000 746,000 766,000 Inventory 1,731,000 1,361,000 1,031,000 Supplies 136,000 106,000 81,000 Long-term assets: Equipment 1,340,000 1,340,000 1,340,000 Less: Accumulated depreciation (660,000) (460,000) (260,000) Total assets 3,774,000 $3,253,000 $3,174,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $192,400 $123,000 $104,400 Interest payable 4,600 0 4,600 Income tax payable 46,000 41,000 36,000 Long-term liabilities: Notes payable 560,000 560,000 560,000 Stockholders' equity: Common stock 660,000 660,000 660,000 Retained earnings 2,311,000 1,869,000 1,809,000 Total liabilities and stockholders’ equity $3,774,000 $3,253,000 $3,174,000 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratio times times Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio % %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 | $11,240,000 | $9,700,000 |
| Cost of goods sold | 7,340,000 | 6,000,000 |
| Gross profit | 3,900,000 | 3,700,000 |
| Expenses: | ||
| Operating expenses | 1,660,000 | 1,610,000 |
| 200,000 | 200,000 | |
| Interest expense | 46,000 | 46,000 |
| Income tax expense | 472,000 | 410,000 |
| Total expenses | 2,378,000 | 2,266,000 |
| Net income | $1,522,000 | $1,434,000 |
| THE ATHLETIC ATTIC | |||
| Balance Sheets | |||
| December 31 | |||
| 2022 | 2021 | 2020 | |
| Assets | |||
| Current assets: | |||
| Cash | $231,000 | $160,000 | $216,000 |
| Accounts receivable | 996,000 | 746,000 | 766,000 |
| Inventory | 1,731,000 | 1,361,000 | 1,031,000 |
| Supplies | 136,000 | 106,000 | 81,000 |
| Long-term assets: | |||
| Equipment | 1,340,000 | 1,340,000 | 1,340,000 |
| Less: Accumulated depreciation | (660,000) | (460,000) | (260,000) |
| Total assets | 3,774,000 | $3,253,000 | $3,174,000 |
| Liabilities and |
|||
| Current liabilities: | |||
| Accounts payable | $192,400 | $123,000 | $104,400 |
| Interest payable | 4,600 | 0 | 4,600 |
| Income tax payable | 46,000 | 41,000 | 36,000 |
| Long-term liabilities: | |||
| Notes payable | 560,000 | 560,000 | 560,000 |
| Stockholders' equity: | |||
| Common stock | 660,000 | 660,000 | 660,000 |
| 2,311,000 | 1,869,000 | 1,809,000 | |
| Total liabilities and stockholders’ equity | $3,774,000 | $3,253,000 | $3,174,000 |
Required:
1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.)
|
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