Data for Virtual Gaming Systems is provided in P12-4A. Earnings per share for the year ended December 31, 2012, are $1.30. The closing stock price on December 31, 2012, is $27.30.
In P12-4A

Required:
Calculate the following profitability ratios for 2012.
1. Gross profit ratio.
2. Return on assets.
3. Profit margin.
4. Asset turnover.
5. Return on equity.
6. Price-earnings ratio.

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VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2012 Sales revenue Cost of goods sold $3,036,000 1,950,000 1,086,000 Operating expenses 2 Loss on sale of land Interest expense Income tax expense Total expenses 956,000 130,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2011 Accounts receivable Less: Accumulated depreciation Liabilities and Stockholders' Eq Total liabilities and stockholders' equity