THE ATHLETIC ATTIC Income Statement For the Year Ended December 31, 2024 Net sales $8,900,000 Cost of goods sold 5,450,000 Gross profit 3,450,000 Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000 Net income $1,230,000 THE ATHLETIC ATTIC Balance Sheets December 31 2024 2023 Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000 Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000 Retained earnings 1,744,000 Total liabilities and stockholders’ equity $3,199,000 Earnings per share for the year ended December 31, 2024, are $1.36. The closing stock price on December 31, 2024, is $22.42. Required: Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.). Profitability Ratios 1. Gross profit ratio 38.8 % 2. Return on assets 39.0 % 3. Profit margin 13.8 % 4. Asset turnover times 5. Return on equity % 6. Price-earnings ratio
THE ATHLETIC ATTIC
Income Statement
For the Year Ended December 31, 2024
Net sales $8,900,000
Cost of goods sold 5,450,000
Gross profit 3,450,000
Expenses:
Operating expenses $1,600,000
Interest expense 50,000
Income tax expense 360,000
Total expenses 2,220,000
Net income $1,230,000
THE ATHLETIC ATTIC
Balance Sheets
December 31
2024 2023
Assets
Current assets:
Cash $164,000
Accounts receivable 790,000
Inventory 1,405,000
Supplies 110,000
Long-term assets:
Equipment 1,150,000
Less:
Total assets $3,199,000
Liabilities and
Current liabilities:
Accounts payable $115,000
Interest payable 0
Income tax payable 40,000
Long-term liabilities:
Notes payable 600,000
Stockholders' equity:
Common stock 700,000
Total liabilities and stockholders’ equity $3,199,000
Earnings per share for the year ended December 31, 2024, are $1.36. The closing stock price on December 31, 2024, is $22.42.
Required:
Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.).
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