The following income statement and balance sheets for Virtual Gaming Systems are provided Net sales VIRTUAL...
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The following income statement and balance sheets for Virtual Gaming Systems are provided Net sales VIRTUAL GAMING SYSTEMS Income Statement for the Year Ended December 31, 2024 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 $851,000 23,500 7,300 11,500 41,000 $3,001,000 1,943,000 1,058,000 914,300 $123,700 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets $179,000 $137,000 74,000 98,000 11,300 Investment in bonds 98,000 Land 203,000 233,000 Equipment 263,000 203,000 Less Accumulated depreciation (58,500) (05,000) Total assets $724,160 Liabilities and stockholders' Equity Current liabilities Accounts payable 559,000 $74,000 Interest payeble Income tax payable 4,600 11,500 2,300 13,300 Long-term lalities 378,000 210,000 Stockholders equity Common stock 293,000 293,000 Retained earnings 221,200 133,500 Total liabilities and stockholders' equity 5467,000 $724,100 Required: Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio times days times days 7. Debt to equity ratio 8. Times interest earned ratio: % times The following income statement and balance sheets for Virtual Gaming Systems are provided Net sales VIRTUAL GAMING SYSTEMS Income Statement for the Year Ended December 31, 2024 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 $851,000 23,500 7,300 11,500 41,000 $3,001,000 1,943,000 1,058,000 914,300 $123,700 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets $179,000 $137,000 74,000 98,000 11,300 Investment in bonds 98,000 Land 203,000 233,000 Equipment 263,000 203,000 Less Accumulated depreciation (58,500) (05,000) Total assets $724,160 Liabilities and stockholders' Equity Current liabilities Accounts payable 559,000 $74,000 Interest payeble Income tax payable 4,600 11,500 2,300 13,300 Long-term lalities 378,000 210,000 Stockholders equity Common stock 293,000 293,000 Retained earnings 221,200 133,500 Total liabilities and stockholders' equity 5467,000 $724,100 Required: Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio times days times days 7. Debt to equity ratio 8. Times interest earned ratio: % times
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