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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 % % % times 2025 % % % times

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 % % % times 2025 % % % times

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 % % % times 2025 % % % times
Transcribed Image Text: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 % % % times 2025 % % % times
Income statements and balance sheets data for Virtual Gaming Systems are provided below. 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 Assets Current assets: Cash VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 2025 $3,470,000 2,472,000 998,000 947,000 22,000 0 14,000 7, 200 990, 200 7,800 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $2,996,000 1,942,000 1,054,000 850,000 23,000 7,200 11,000 44,000 935, 200 118,800 2025 $197,000 71,000 121,000 13, 200 97,000 292,000 292,000 (79,000) $1,004, 200 $264,600 6,600 11, 200 320,000 292,000 109,800 $1,004, 200 2024 $178,000 73,000 97,000 11, 200 97,000 202,000 262,000 (57,000) $863,200 $58,000 4,400 11,000 277,000 292,000 220,800 $863,200 2023 $136,000 52,000 127,000 5,040 0 232,000 202,000 (34,000) $720,040 $93,640 2,200 13, 200 217,000 292,000 102,000 $720,040
Transcribed Image Text:Income statements and balance sheets data for Virtual Gaming Systems are provided below. 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 Assets Current assets: Cash VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 2025 $3,470,000 2,472,000 998,000 947,000 22,000 0 14,000 7, 200 990, 200 7,800 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $2,996,000 1,942,000 1,054,000 850,000 23,000 7,200 11,000 44,000 935, 200 118,800 2025 $197,000 71,000 121,000 13, 200 97,000 292,000 292,000 (79,000) $1,004, 200 $264,600 6,600 11, 200 320,000 292,000 109,800 $1,004, 200 2024 $178,000 73,000 97,000 11, 200 97,000 202,000 262,000 (57,000) $863,200 $58,000 4,400 11,000 277,000 292,000 220,800 $863,200 2023 $136,000 52,000 127,000 5,040 0 232,000 202,000 (34,000) $720,040 $93,640 2,200 13, 200 217,000 292,000 102,000 $720,040
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