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Required information (The following information applies to the questions displayed below.) Income statements and balance sheets data for Virtual Gaming Systems are provided below. 2024 $2,991, 000 1,941,000 1,650,000 VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 Net sales $3,465,000 Cost of goods sold 2,471,000 Gross profit 994, 000 Expenses: Operating expenses 946,000 Depreciation expense 21,800 Loss on sale of land 0 Interest expense 13,500 Income tax expense 7, 100 Total expenses 987,600 Net income 6,400 849,000 22,500 7, 100 10,500 43,500 932, 600 117, 400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 $196,500 70,500 120, 500 13, 100 $177,000 72,000 96,000 11, 100 $135,000 51,000 126,000 4,920 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 96,000 291,600 291,000 (76,500) $1,602, 100 96,000 201,000 261,000 (55,500) $858, 600 231,000 201,000 (33,000) $715, 920 $274, 800 6,300 11, 100 $57,000 4,200 10,500 $91,220 2,100 13, 100 310,000 276,000 216,000 291,000 108,900 $1,602, 100 291,000 219,900 $858, 600 291, 000 102,500 $715, 920 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 % 96 % % Gross profit ratio Return on assets Profit margin Asset turnover % 96 times times