Data for Virtual Gaming Systems are provided in P12–4A. Earnings per share for the year ended December 31, 2021, are $1.40. The closing stock price on December 31, 2021, is $28.30.

Required:

Calculate the following profitability ratios for 2021.

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, 2021 Net sales $ 3,086,000 Cost of goods sold 1,960,000 Gross profit 1,126,000 Expenses: $868,000 Operating expenses Depreciation expense 32,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,000 Total expenses 987,000 Net income $ 139,000