Net sales. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Cost of goods...
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Net sales. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 2024 $3,485,000 $3,011,000 2,475,000 1,945,000) 1,010,000 1,066,000 950,000 853,000 25,000 24,500 e 7,500 15,500 12,500 7,500 45,500 998,000 943,000 12,000 123,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Land Equipment $198,500 72,500 $181,000 $139,000 76,000 122,500 100,000 55,000 130,000 13,500 11,500 5,400 Investment in bonds 100,000 100,000 295,000 205,000 235,000 295,000 265,000 205,000 Less: Accumulated depreciation: (86,500) (61,500) (37,000) Total assets $1,010,500 $877,000 $732,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $234,000 $61,000 $100,900 Interest payable 7,500 5,000 2,500 Income tax payable 11,500 12,500 13,500 Long-term liabilities: Notes payable Stockholders equity: Connon stock Retained earnings 350,000 280,000 220,000 295,000 295,000 295,000 112,500 223.500 100.500 Required information Prepaid rent Long-term assets: Investment in bonds i Land Equipment 1,300 2,400 100,000 100,000 295,000 205,000 235,000 295,000 265,000 205,000 Less: Accumulated depreciation (86,500) (61,580) (37,000) Total assets $1,010,500 $877,000 $732,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $234,000 $61,000 $100,900 Interest payable 7,500 5,000 2,500 Income tax payable 11,500 12,500 13,500 Long-term liabilities: Notes payable Stockholders' equity: Common stock 350,000 280,000 220,000 295,000 295,000 295,000 Retained earnings Total liabilities and stockholders' equity 112,500 $1,010,500 223,500 100,500 $877,000 $732,400 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times Net sales. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 2024 $3,485,000 $3,011,000 2,475,000 1,945,000) 1,010,000 1,066,000 950,000 853,000 25,000 24,500 e 7,500 15,500 12,500 7,500 45,500 998,000 943,000 12,000 123,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Land Equipment $198,500 72,500 $181,000 $139,000 76,000 122,500 100,000 55,000 130,000 13,500 11,500 5,400 Investment in bonds 100,000 100,000 295,000 205,000 235,000 295,000 265,000 205,000 Less: Accumulated depreciation: (86,500) (61,500) (37,000) Total assets $1,010,500 $877,000 $732,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $234,000 $61,000 $100,900 Interest payable 7,500 5,000 2,500 Income tax payable 11,500 12,500 13,500 Long-term liabilities: Notes payable Stockholders equity: Connon stock Retained earnings 350,000 280,000 220,000 295,000 295,000 295,000 112,500 223.500 100.500 Required information Prepaid rent Long-term assets: Investment in bonds i Land Equipment 1,300 2,400 100,000 100,000 295,000 205,000 235,000 295,000 265,000 205,000 Less: Accumulated depreciation (86,500) (61,580) (37,000) Total assets $1,010,500 $877,000 $732,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $234,000 $61,000 $100,900 Interest payable 7,500 5,000 2,500 Income tax payable 11,500 12,500 13,500 Long-term liabilities: Notes payable Stockholders' equity: Common stock 350,000 280,000 220,000 295,000 295,000 295,000 Retained earnings Total liabilities and stockholders' equity 112,500 $1,010,500 223,500 100,500 $877,000 $732,400 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times
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