Required Information Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) (The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Incore Statcments For the years ended Decenber 31 2022 $12,500,e00 В, 150, eee 4,35e,000 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses $11,050,000 6,900,800 4,150,000 1,750,000 200,000 55,000 580,000 1,700,000 200,000 55,000 500,000 2,585,000 $ 1,765,000 2,455,000 Net incone $ 1,695,000 THE ATHLETIC ATTIC Balance Shects December 31 2822 2821 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies Long term assets: Equipment Less: Accumulated depreciation 240,0ee 1,005,eee 1,740,000 145,0ee 178,000 755,880 1,370,eee 115,000 234,000 775,800 1,848,eee 90,000 1,700,eee 1,700,000 (750,000) $4,080,000 1,700,000 (550, ee0) (350,000) Total assets $3,560,000 $3,489,e00 Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable Income tax payable Long tern liabilities: Notes payable stockholders equity: 151,000 $ 139,5ee 218,500 5,500 55.000 5.500 45,e00 5e,000 650,000 650,000 650,000 758,000 2,401,000 750,000 1,959,000 750,000 1,899,e00 Common stock Retained carnings Total liabilities and stockholders equity $4,088,000 $3,560,000 $3.489,000 oblem 12-6B Part 2 alculate the following profitobility ratios for 2021 and 2022: (Round your answers to 1 decimal place.)
Required Information Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) (The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Incore Statcments For the years ended Decenber 31 2022 $12,500,e00 В, 150, eee 4,35e,000 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses $11,050,000 6,900,800 4,150,000 1,750,000 200,000 55,000 580,000 1,700,000 200,000 55,000 500,000 2,585,000 $ 1,765,000 2,455,000 Net incone $ 1,695,000 THE ATHLETIC ATTIC Balance Shects December 31 2822 2821 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies Long term assets: Equipment Less: Accumulated depreciation 240,0ee 1,005,eee 1,740,000 145,0ee 178,000 755,880 1,370,eee 115,000 234,000 775,800 1,848,eee 90,000 1,700,eee 1,700,000 (750,000) $4,080,000 1,700,000 (550, ee0) (350,000) Total assets $3,560,000 $3,489,e00 Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable Income tax payable Long tern liabilities: Notes payable stockholders equity: 151,000 $ 139,5ee 218,500 5,500 55.000 5.500 45,e00 5e,000 650,000 650,000 650,000 758,000 2,401,000 750,000 1,959,000 750,000 1,899,e00 Common stock Retained carnings Total liabilities and stockholders equity $4,088,000 $3,560,000 $3.489,000 oblem 12-6B Part 2 alculate the following profitobility ratios for 2021 and 2022: (Round your answers to 1 decimal place.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
Problem 12-6B Use ratios to analyze risk and profitablity (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for The Athletic Attic are provided below.
THE ATHLETIC ATTIC
Incore Statements
For the years ended December 31
2022
$12,500,800
8,150,eee
4,350,000
2021
Not sales
Cost of goods sold
Gross profit
Expenses:
Operating cxpenses
Depreciation expense
Interest expense
Income tax expense
Total expenses
$11,e5e,000
6,900,000
4,150,000
1,750,000
200,e00
55,000
588, 000
2,585,000
1,700,000
200,800
55,000
500,000
2,455,000
$ 1,695,00e
Net income
$ 1,765,000
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
20z0
Assets
Current assets:
0
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipment
Less: Accumulated depreciation
178,000
755,000
1,370,00e
115,000
234,000
775,000
1,040,eee
90,000
240,000
1,005,eee
1,740,000
145,000
1,700,000
(750,000)
$4,080,000
1,700,e00
(550,000)
$3,560,000
1,700,000
(358,000
$3,489,000
Total asscts
Liabilitics and Stockholders Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilities:
Notes payable
Stockholders' equity:
151,000
219,500
5,500
55, 000
139,500
5,500
45,000
5e,000
650,000
650,000
650,000
Common stock
Retained carnings
Total liabilıtics and stockholders equity
750,000
2,401.000
$4, 080,000
750,000
1,959,000
750,000
1,899 e00
$3,560,000
$3,489,00
Problem 12-6B Part 2
2. Colculote the following profitability retios for 2021 end 2022: (Round your answers to 1 decimal place.)
2021
2022
Gross oro tio
Reluri on se
Profsmargn](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2F000af517-565e-4da2-a8b4-16ad3ea7ef86%2Fgg554s49_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
Problem 12-6B Use ratios to analyze risk and profitablity (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for The Athletic Attic are provided below.
THE ATHLETIC ATTIC
Incore Statements
For the years ended December 31
2022
$12,500,800
8,150,eee
4,350,000
2021
Not sales
Cost of goods sold
Gross profit
Expenses:
Operating cxpenses
Depreciation expense
Interest expense
Income tax expense
Total expenses
$11,e5e,000
6,900,000
4,150,000
1,750,000
200,e00
55,000
588, 000
2,585,000
1,700,000
200,800
55,000
500,000
2,455,000
$ 1,695,00e
Net income
$ 1,765,000
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
20z0
Assets
Current assets:
0
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipment
Less: Accumulated depreciation
178,000
755,000
1,370,00e
115,000
234,000
775,000
1,040,eee
90,000
240,000
1,005,eee
1,740,000
145,000
1,700,000
(750,000)
$4,080,000
1,700,e00
(550,000)
$3,560,000
1,700,000
(358,000
$3,489,000
Total asscts
Liabilitics and Stockholders Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilities:
Notes payable
Stockholders' equity:
151,000
219,500
5,500
55, 000
139,500
5,500
45,000
5e,000
650,000
650,000
650,000
Common stock
Retained carnings
Total liabilıtics and stockholders equity
750,000
2,401.000
$4, 080,000
750,000
1,959,000
750,000
1,899 e00
$3,560,000
$3,489,00
Problem 12-6B Part 2
2. Colculote the following profitability retios for 2021 end 2022: (Round your answers to 1 decimal place.)
2021
2022
Gross oro tio
Reluri on se
Profsmargn
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