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