Retained earnings Total liabilities and stockholders' equity 111,600 $1,008,400 222,600 $872,400 Problem 12-6A (Algo) Part 1...

Transcribed Image Text:

Retained earnings Total liabilities and stockholders' equity 111,600 $1,008,400 222,600 $872,400 Problem 12-6A (Algo) Part 1 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025 (Rous place.) Receivables turnover fatio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times Required information Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4 [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided belo VIRTUAL GAMING SYSTEMS: Income Statements For the Years Ended December 31 ces 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. $3,480,000 2,474,000 2024 $3,006,000 1,944,000 1,006,000 1,062,000 949,000 852,000 24,000 24,000 @ 2,400 15,000 12,000 7,400 45,000 995,400 940, 400 10,600 121,600 VIRTUAL GAMING SYSTEMS Balance Shoate et income. 10,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 121,600 2025 2024 2023 sets rrent assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation $198,000 $180,000 $138,000 72,000 75,000 54,000 122,000 99,000 129,000 13,400 11,400 5,280 99,000 99,000 e 294,000 204,000 234,000 294,000 264,000 204,000 (84,000) (60,000) (36,000) Total assets $1,008,400 $872,400 $728,280 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $244,200 7,200 11,400 $60,000 $98,480 4,800 12,000 2,400 13,400 Long-term liabilities: Notes payable Stockholders' equity: 340,000 279,000 219,000 Common stock 294,000 294,000 294,000 Retained earnings 111,600 222,600 101,000 Total liabilities and stockholders' equity $1,008,400 $872,400 $720,280 oblem 12-6A (Algo) Part 1 Retained earnings Total liabilities and stockholders' equity 111,600 $1,008,400 222,600 $872,400 Problem 12-6A (Algo) Part 1 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025 (Rous place.) Receivables turnover fatio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times Required information Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4 [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided belo VIRTUAL GAMING SYSTEMS: Income Statements For the Years Ended December 31 ces 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. $3,480,000 2,474,000 2024 $3,006,000 1,944,000 1,006,000 1,062,000 949,000 852,000 24,000 24,000 @ 2,400 15,000 12,000 7,400 45,000 995,400 940, 400 10,600 121,600 VIRTUAL GAMING SYSTEMS Balance Shoate et income. 10,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 121,600 2025 2024 2023 sets rrent assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation $198,000 $180,000 $138,000 72,000 75,000 54,000 122,000 99,000 129,000 13,400 11,400 5,280 99,000 99,000 e 294,000 204,000 234,000 294,000 264,000 204,000 (84,000) (60,000) (36,000) Total assets $1,008,400 $872,400 $728,280 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $244,200 7,200 11,400 $60,000 $98,480 4,800 12,000 2,400 13,400 Long-term liabilities: Notes payable Stockholders' equity: 340,000 279,000 219,000 Common stock 294,000 294,000 294,000 Retained earnings 111,600 222,600 101,000 Total liabilities and stockholders' equity $1,008,400 $872,400 $720,280 oblem 12-6A (Algo) Part 1