Required information [The following information applies to the questions displayed below.) Income statements and balance sheets...
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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. 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 1,078,000 856,000 2025 $3,500,000 2024 $3,026,000 2,478,000 1,948,000 1,022,000 953,000 28,000 26,000 0 7,800 17,000 14,000 7,800 47,000 1,005,800 950,800 16,200 127,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 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 2025 2024 2023 $200,000 $184,000 $142,000 74,000 79,000 124,000 103,000 13,800 11,800 58,000 133,000 5,760 103,000 103,000 B 298,000 208,000 238,000 298,000 268,000 208,000 (94,000) (66,000) (40,000) $1,016,800 $890,800 $744,760 $203,400 $64,000 $108,160 8,400 11,800 5,600 14,000 2,800 13,800 380,000 283,000 223,000 298,000 298,000 298,000 115,200 226,200 99,000 $1,016,800 $890,800 $744,760 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2024 % 2025 % % % % % times times Required information [The following information applies to the questions displayed below.) Income statements and balance sheets data for Virtual Gaming Systems are provided below. 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 1,078,000 856,000 2025 $3,500,000 2024 $3,026,000 2,478,000 1,948,000 1,022,000 953,000 28,000 26,000 0 7,800 17,000 14,000 7,800 47,000 1,005,800 950,800 16,200 127,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 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 2025 2024 2023 $200,000 $184,000 $142,000 74,000 79,000 124,000 103,000 13,800 11,800 58,000 133,000 5,760 103,000 103,000 B 298,000 208,000 238,000 298,000 268,000 208,000 (94,000) (66,000) (40,000) $1,016,800 $890,800 $744,760 $203,400 $64,000 $108,160 8,400 11,800 5,600 14,000 2,800 13,800 380,000 283,000 223,000 298,000 298,000 298,000 115,200 226,200 99,000 $1,016,800 $890,800 $744,760 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2024 % 2025 % % % % % times times
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