The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement Year Ended December 31, 2024. For the Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment $1,545,000 199,000 39,000 349,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: THE ATHLETIC ATTIC Balance Sheets December 31 Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: $8,790,000 5,395,000 3,395,000 2,132,000 $1,263,000 2024 $153,000 735,000 1,350,000 99,000 2023 $104,000 0 34,500 490,000 $203,000 755,000 1,020,000 74,000 1,095,000 1,095,000 (398,000) (199,000) $3,034,000 $2,948,000 $80,000 3,900 29,900 490,000
The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement Year Ended December 31, 2024. For the Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment $1,545,000 199,000 39,000 349,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: THE ATHLETIC ATTIC Balance Sheets December 31 Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: $8,790,000 5,395,000 3,395,000 2,132,000 $1,263,000 2024 $153,000 735,000 1,350,000 99,000 2023 $104,000 0 34,500 490,000 $203,000 755,000 1,020,000 74,000 1,095,000 1,095,000 (398,000) (199,000) $3,034,000 $2,948,000 $80,000 3,900 29,900 490,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The following income statement and balance sheets for The Athletic Attic are provided.
THE ATHLETIC ATTIC
Income Statement
Year Ended December 31, 2024
For the
Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses.
Depreciation expense
Interest expense
Income tax expense.
Total expenses
Net income
Assets
Current assets:
Cash
$1,545,000
199,000
39,000
349,000
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stark
THE ATHLETIC ATTIC
Balance Sheets
December 31
Accounts receivable
Inventory
Supplies
Long-term assets:
Equipment
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
$8,790,000
5,395,000
3,395,000
2,132,000
$1,263,000
2024
$153,000
735,000
1,350,000
99,000
1,095,000
(398,000)
$3,034,000
$104,000
0
34,500
490,000
500 000
2023
$203,000
755,000
1,020,000
74,000
1,095,000
(199,000)
$2,948,000
$80,000
3,900
29,900
490,000
500 000

Transcribed Image Text:Long-term assets:
Equipment
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
$104,000
0
34,500
490,000
Notes payable
Stockholders' equity:
Common stock
590,000
590,000
Retained earnings
1,815,500
1,754,200
Total liabilities and stockholders' equity
$3,034,000 $2,948,000
Earnings per share for the year ended December 31, 2024, are $1.25. The closing stock price on December 31, 2
Required:
Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decima
Profitability Ratios
1. Gross profit ratio
2. Return on assets
3. Profit margin
4. Asset turnover
5. Return on equity
6. Price-earnings ratio
38.6%
42.3 %
14.4 %
2.9 times
53.2 %
17.1
1,095,000
(398,000)
$3,034,000
1,095,000
(199,000)
$2,948,000
$80,000
3,900
29,900
490,000
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