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1 The following income statement and balance sheets for The Sports Shack are provided. eBook The Sports Shack Income Statement For the year ended December 31, 2021 Sales revenue $6,600,000 Cost of goods sold 4,700,000 Gross profit 1,900,000 Expenses: Operating expenses 1,400,000 Depreciation expense 100,000 Interest expense 50,000 Income tax expense 80,000 Total expenses 1,630,000 Net income $ 270,000 The Sports Shack Balance Sheets December 31 2021 2020 $ 218,000 680,000 1,250,000 90,000 $ 196,000 880,000 1,100,000 65,000 1,200,000 (350,000 $3,088,000 900,000 (250,000) $2,891,000 Assets Current assets: Cash Accounts receivable Inventory Supplies 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: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ $ 65,000 4,000 40,000 55,000 6,000 30,000 400,000 300,000 900,000 1,679,000 $3,088,000 200,000 1,600,000 $2,891,000 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your intermediate and final answers to 1 decimal place.) times days times Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio days to 1 to 1 % times

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