Required Informatlon 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 Incone Statements For the years ended December 31 2022 $12, see, ee 8, 15e,eee 4,350,e00 2021 $11,0se,000 6,900,000 4,150,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses 1,700,000 200, eee 1,75e,eee 200,000 55,000 5se,ee0 2, 585,000 $ 1,765,000 55,e00 500,000 2,455,e00 $ 1,695,000 Net inconc THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 1,005,000 1,748,000 145,000 240,000 178,e00 755,eee 1,37e,eee 115,000 234,000 775,e0e 1,040,eee 90,000 Accounts reccivable Inventory Supplics Long term assets: Equipnent Less: Accumulated depreciation 1,700,eee (75e,00e) 1,700,000 (Sse,e00) $3,560,e00 1,700,000 (35e,ee0) Total assets $4,088,00e $3,489,000 Liabilities and Stockholders' Equity Current liabilitics: Accounts payable Interest payable Income tax payable Long term liabilitics: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity $ 218,500 5,500 55,00 151,000 139,500 5,500 45,0ee e. 50,000 650,000 650,000 658,e00 750,000 2,401.000 758,000 1,959,eee 750,000 1,899,e00 244,888,000 3,560,000 $3,489,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratiO litnes Limes Inveritory turnover ralio pimes lime Current ato Dubt to oguity ratia
Required Informatlon 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 Incone Statements For the years ended December 31 2022 $12, see, ee 8, 15e,eee 4,350,e00 2021 $11,0se,000 6,900,000 4,150,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses 1,700,000 200, eee 1,75e,eee 200,000 55,000 5se,ee0 2, 585,000 $ 1,765,000 55,e00 500,000 2,455,e00 $ 1,695,000 Net inconc THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 1,005,000 1,748,000 145,000 240,000 178,e00 755,eee 1,37e,eee 115,000 234,000 775,e0e 1,040,eee 90,000 Accounts reccivable Inventory Supplics Long term assets: Equipnent Less: Accumulated depreciation 1,700,eee (75e,00e) 1,700,000 (Sse,e00) $3,560,e00 1,700,000 (35e,ee0) Total assets $4,088,00e $3,489,000 Liabilities and Stockholders' Equity Current liabilitics: Accounts payable Interest payable Income tax payable Long term liabilitics: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity $ 218,500 5,500 55,00 151,000 139,500 5,500 45,0ee e. 50,000 650,000 650,000 658,e00 750,000 2,401.000 758,000 1,959,eee 750,000 1,899,e00 244,888,000 3,560,000 $3,489,000 Problem 12-6B Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratiO litnes Limes Inveritory turnover ralio pimes lime Current ato Dubt to oguity ratia
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.14P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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![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
Incone Statements
For the years ended December 31
2022
$12, see, eee
8, 150,eee
4,350,000
2021
Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses
bepreciation expense
Interest expense
Income tax expense
Total expenses
$11,0se,000
6,900,000
4,150,000
1,750,eee
200,000
55,000
58e,e00
2,585,000
$ 1,765,000
1,700,000
200, e00
55,000
500,000
2,455,e00
$ 1,695,000
Net incone
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
2020
Assets
Current assets:
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipnent
Less: Accumulated depreciation
$
240,000
1,005,000
1,740,000
145,800
170,000
755,000
1,370,000
115,000
234,000
775,00e
1,048,eee
90,000
1,700,000
(75e,00e)
1,700,000
(S5e,000)
$3,560,ee0
1,700,000
(35e,ee0)
Total assets
$4,080,000
$3,489,000
Liabilities and Stockholders' Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilitics:
Notes payable
stockholders' equity:
Common stock
Retained carnings
218,500
5,500
55,00
151,000
139,50e
5,500
45,0ee
50,000
65e,000
650,000
658,e00
750, ee0
758,ee0
1,959,eee
$3,568,000
750, ee0
1,899,000
2,401.000
Total liabilities and stockholders equity
244,888,000
53.489,000
Problem 12-6B Part 1
Required:
1. Calculate the following risk rotios for 2021 and 2022: (Round your answers to 1 decimal place.)
2021
2022
Receivables turnover ratiO
litnes
Limes
Inventory turnover ralio
times
limen
Current ratio
Debt to eguty raa](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2Fbfa2c6da-537e-43bf-8fe0-578bc4581b6f%2Fxh4pm18_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Incone Statements
For the years ended December 31
2022
$12, see, eee
8, 150,eee
4,350,000
2021
Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses
bepreciation expense
Interest expense
Income tax expense
Total expenses
$11,0se,000
6,900,000
4,150,000
1,750,eee
200,000
55,000
58e,e00
2,585,000
$ 1,765,000
1,700,000
200, e00
55,000
500,000
2,455,e00
$ 1,695,000
Net incone
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
2020
Assets
Current assets:
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipnent
Less: Accumulated depreciation
$
240,000
1,005,000
1,740,000
145,800
170,000
755,000
1,370,000
115,000
234,000
775,00e
1,048,eee
90,000
1,700,000
(75e,00e)
1,700,000
(S5e,000)
$3,560,ee0
1,700,000
(35e,ee0)
Total assets
$4,080,000
$3,489,000
Liabilities and Stockholders' Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilitics:
Notes payable
stockholders' equity:
Common stock
Retained carnings
218,500
5,500
55,00
151,000
139,50e
5,500
45,0ee
50,000
65e,000
650,000
658,e00
750, ee0
758,ee0
1,959,eee
$3,568,000
750, ee0
1,899,000
2,401.000
Total liabilities and stockholders equity
244,888,000
53.489,000
Problem 12-6B Part 1
Required:
1. Calculate the following risk rotios for 2021 and 2022: (Round your answers to 1 decimal place.)
2021
2022
Receivables turnover ratiO
litnes
Limes
Inventory turnover ralio
times
limen
Current ratio
Debt to eguty raa
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