Data for Virtual Gaming Systems are provided in P124A. Earnings per share for the year ended December 31, 2015, are $1.40. The closing stock price

Data for Virtual Gaming Systems are provided in P12–4A. Earnings per share for the year ended December 31, 2015, are $1.40. The closing stock price on December 31, 2015, is $28.30.

In P12–4A, The following income statement and balance sheets for Virtual Gaming Systems are provided.

Required:
Calculate the following profitability ratios for 2015.
1. Gross profit ratio.
2. Return on assets.
3. Profit margin.
4. Asset turnover.
5. Return on equity.
6. Price-earningsratio.

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015 Net sales Cost of goods sold $3,086,000 1960000 1,126,000 Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $868,000 32,000 9,000 20,000 58,000 Total expenses 987,000 $139,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets 2015 2014 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 115,000 220,000 280,000 250,000 220,000 (52,000) $794 200 Total assets Liabilities and Stockholders' E Current liabilities Accounts payable Interest payable S 76,000 8,000 20,000 $91,000 4,000 15,000 Income tax payable Long-term liabilities: Notes payable Stockholders equity: Common stock 295,000 235,000 310,000 237,000 310,000 139,200 $794200 Retained earnings Total liabilities and stockholders' equity