The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS...
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The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 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 $3,001,000 1,943,000 1,058,000 $851,000 23,500 7,300 11,500 41,000 934,300 $123,700 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land $179,000 $137,000 74,000 53,000 98,000 128,000 11,300 5,160 98,000 203,000 233,000 Equipment 263,000 203,000 Less: Accumulated depreciation (58,500) (35,000) Total assets 867,800 $724,160 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $59,000 $74,000 Interest payable 4,600 2,300 Income tax payable Long-term liabilities: Notes payable 11,500 13,300 278,000 218,000 Equipmen Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 205,000 205,000 (58,500) (35,000) 867,800 $724,160 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Required: $59,000 4,600 $74,000 2,300 11,500 13,300 278,000 218,000 293,000 293,000 221,700 123,560 $867,800 $724,160 Assuming that all sales were on account, calculate the following risk ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period times days 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 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. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 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 $3,001,000 1,943,000 1,058,000 $851,000 23,500 7,300 11,500 41,000 934,300 $123,700 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land $179,000 $137,000 74,000 53,000 98,000 128,000 11,300 5,160 98,000 203,000 233,000 Equipment 263,000 203,000 Less: Accumulated depreciation (58,500) (35,000) Total assets 867,800 $724,160 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $59,000 $74,000 Interest payable 4,600 2,300 Income tax payable Long-term liabilities: Notes payable 11,500 13,300 278,000 218,000 Equipmen Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 205,000 205,000 (58,500) (35,000) 867,800 $724,160 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Required: $59,000 4,600 $74,000 2,300 11,500 13,300 278,000 218,000 293,000 293,000 221,700 123,560 $867,800 $724,160 Assuming that all sales were on account, calculate the following risk ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period times days 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio times days 7. Debt to equity ratio 8. Times interest earned ratio % times
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