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

Earnings per share for the year ended December 31, 2021, are $1.30. The closing stock price on December 31, 2021, is $26.50.

Required:

Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.)

Transcribed Image Text:

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense $2,996, 000 1,942,000 1,054,000 $850, 000 27,000 7,200 11,000 40,000 Loss on sale of land Interest expense Income tax expense Total expenses 935, 200 $ 118,800 Net income VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense $2,996, 000 1,942,000 1,054,000 $850, 000 27,000 7,200 11,000 40,000 Loss on sale of land Interest expense Income tax expense Total expenses 935, 200 $ 118,800 Net income

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