Data for Virtual Gaming Systems are provided in P12–4A. Earnings per share for the year ended December 31, 2024, are $1.40. The closing stock price on December 31, 2024, is $28.30.

Data from in P12-4A

The following income statement and balance sheets for Virtual Gaming Systems are provided.

Required:
Calculate the following profitability ratios for 2024.
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, 2024 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $868,000 32,000 9,000 20,000 58,000 $ 3,086,000 1,960,000 1,126,000 987,000 $ 139,000