Reference no: EM132613600

The following condensed information is reported by Sporting Collectibles.

                                                              2021                          2020

Income Statement Information

Sales revenue                                  $13,464,000            $9,100,000

Cost of goods sold                               8,711,208               6,600,000

Net income                                           400,180                  318,000

Balance Sheet Information

Current assets                                        $1,670,000             $1,570,000

Long-term assets                                      2,270,000                  1,970,000

Total assets                                             $3,940,000                    $3,540,000

Current liabilities                                           $1,270,000                       $970,000

Long-term liabilities                                          1,430,000                         1,430,000

Common stock                                                    870,000                             870,000

Retained earnings                                                  370,000                           270,000

Total liabilities and stockholders' equity                       $3,940,000                  $3,540,000

Required:

Question a: Calculate the following profitability ratios for 2021:

Gross profit ratio, return on assets, profit margin, asset turnover, return on equity