Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income
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Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS | |||||||
Income Statements | |||||||
For the years ended December 31 | |||||||
2022 | 2021 | ||||||
Net sales | $ | 3,550,000 | $ | 3,076,000 | |||
Cost of goods sold | 2,488,000 | 1,958,000 | |||||
Gross profit | 1,062,000 | 1,118,000 | |||||
Expenses: | |||||||
Operating expenses | 963,000 | 866,000 | |||||
Depreciation expense | 38,000 | 31,000 | |||||
Loss on sale of land | 0 | 8,800 | |||||
Interest expense | 22,000 | 19,000 | |||||
Income tax expense | 8,800 | 52,000 | |||||
Total expenses | 1,031,800 | 976,800 | |||||
Net income | $ | 30,200 | $ | 141,200 | |||
VIRTUAL GAMING SYSTEMS | ||||||||||||
Balance Sheets | ||||||||||||
December 31 | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash | $ | 213,000 | $ | 194,000 | $ | 152,000 | ||||||
Accounts receivable | 87,000 | 89,000 | 68,000 | |||||||||
Inventory | 137,000 | 113,000 | 143,000 | |||||||||
Prepaid rent | 14,800 | 12,800 | 6,960 | |||||||||
Long-term assets: | ||||||||||||
Investment in bonds | 113,000 | 113,000 | 0 | |||||||||
Land | 308,000 | 218,000 | 248,000 | |||||||||
Equipment | 308,000 | 278,000 | 218,000 | |||||||||
Less: Accumulated depreciation | (119,000 | ) | (81,000 | ) | (50,000 | ) | ||||||
Total assets | $ | 1,061,800 | $ | 936,800 | $ | 785,960 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 125,400 | $ | 74,000 | $ | 132,360 | ||||||
Interest payable | 11,400 | 7,600 | 3,800 | |||||||||
Income tax payable | 12,800 | 19,000 | 14,800 | |||||||||
Long-term liabilities: | ||||||||||||
Notes payable | 480,000 | 293,000 | 233,000 | |||||||||
Stockholders' equity: | ||||||||||||
Common stock | 308,000 | 308,000 | 308,000 | |||||||||
Retained earnings | 124,200 | 235,200 | 94,000 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,061,800 | $ | 936,800 | $ | 785,960 | ||||||
1. Calculate the following risk ratios for 2021 and 2022:
2021 | 2022 | |||
Receivables Turnover Ratio | times | times | ||
Inventory Turnover Ratio | times | times | ||
Current Ratio | to 1 | to 1 | ||
Debt to Equity Ratio | % | % |
2. Calculate the following profitability ratios for 2021 and 2022
2021 | 2022 | |||
Gross Profit Ratio | % | % | ||
Return on Assets | % | % | ||
Profit Margin | % | % | ||
Asset turnover | times | times |
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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