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, 20241 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 $857,000 $3,031,000 1,949,000 1,082,000 27,000 7,900 14,500 47,000 953,400 $128,600 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 Equipment $185,000 60,000 $143,000 59,000 104,000 11,900 134,000 5,800 104,000 209,000 239,000 269,000 209,000 Less: Accumulated depreciation (68,000) (41,000) Total assets 854,900 $748,000 Liabilities and Stockholders' Equity Current abilities; Accounts payable $65,000 $111,580 Interest payable Income tax payable 5,800 14,500 2,900 13,900 Long-term 11abilities Notes payable 284,000 224,000 stockholders ority) Common stock 299,000 299,000 Retained earnings 226,600 97,500 Total liabilities and stockholders' equity 1894,900 $748,880 Profitability Ratios 1 Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover % % % times 5. Return on equity % 6 Price-earnings ratio 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, 20241 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 $857,000 $3,031,000 1,949,000 1,082,000 27,000 7,900 14,500 47,000 953,400 $128,600 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 Equipment $185,000 60,000 $143,000 59,000 104,000 11,900 134,000 5,800 104,000 209,000 239,000 269,000 209,000 Less: Accumulated depreciation (68,000) (41,000) Total assets 854,900 $748,000 Liabilities and Stockholders' Equity Current abilities; Accounts payable $65,000 $111,580 Interest payable Income tax payable 5,800 14,500 2,900 13,900 Long-term 11abilities Notes payable 284,000 224,000 stockholders ority) Common stock 299,000 299,000 Retained earnings 226,600 97,500 Total liabilities and stockholders' equity 1894,900 $748,880 Profitability Ratios 1 Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover % % % times 5. Return on equity % 6 Price-earnings ratio
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