Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 2025 $ 3,560,000 2,490,000 1,070,000 2024 $ 3,086,000 1,960,000 1,126,000 868,000 965,000 40,000 32,000 0 9,000 23,000 20,000 9,000 1,037,000 $ 33,000 $ 139,000 58,000 987,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 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 $ 216,000 90,000 $ 196,000 91,000 115,000 $ 154,000 70,000 145,000 7,200 140,000 15,000 13,000 115,000 115,000 310,000 220,000 310,000 (124,000) $ 1,072,000 280,000 (84,000) $ 946,000 0 250,000 220,000 (52,000) $ 794,200 $ 161,000 12,000 13,000 $ 76,000 8,000 $ 91,000 4,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 20,000 15,000 450,000 295,000 235,000 310,000 310,000 310,000 126,000 237,000 139,200 $ 1,072,000 $ 946,000 $ 794,200 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio 2024 36.5 % 2025 30.1 % Return on assets % % Profit margin % % Asset turnover times times