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Also, calculate the debt to equity ratio for year 2021 and 2022.

Also, calculate the debt to equity ratio for year 2021 and 2022.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Also, calculate the debt to equity ratio for year 2021 and 2022.

2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio % % Return on assets Profit margin % Asset turnover 3.7 times 3.7 times
Transcribed Image Text:2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio % % Return on assets Profit margin % Asset turnover 3.7 times 3.7 times
VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,500,000 $3,026,000 2,478,000 1,022,000 1,948,000 1,078,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 953,000 28,000 17,000 7,800 1,005,800 $ 856,000 26,000 7,800 14,000 47,000 950,800 16, 200 $ 127,200 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 200,000 74,000 124,000 13,800 $184,000 $142,000 79,000 103,000 11,800 58,000 133,000 5,760 Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land 103,000 298,000 298,000 (94,000) (66,000) 103,000 208,000 268,000 238,000 208,000 (40,000) Equipment Less: Accumulated depreciation Total assets $1,016,800 $890,800 $744,760 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock $ 203,400 8,400 11,800 $ 64,000 5,600 14,000 $108,160 2,800 13,800 380,000 283,000 223,000 298,000 115,200 $1,016,800 $890,800 298,000 226,200 298,000 99,000 $744,760 Retained earnings Total liabilities and stockholders' equity
Transcribed Image Text:VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,500,000 $3,026,000 2,478,000 1,022,000 1,948,000 1,078,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 953,000 28,000 17,000 7,800 1,005,800 $ 856,000 26,000 7,800 14,000 47,000 950,800 16, 200 $ 127,200 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 200,000 74,000 124,000 13,800 $184,000 $142,000 79,000 103,000 11,800 58,000 133,000 5,760 Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land 103,000 298,000 298,000 (94,000) (66,000) 103,000 208,000 268,000 238,000 208,000 (40,000) Equipment Less: Accumulated depreciation Total assets $1,016,800 $890,800 $744,760 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock $ 203,400 8,400 11,800 $ 64,000 5,600 14,000 $108,160 2,800 13,800 380,000 283,000 223,000 298,000 115,200 $1,016,800 $890,800 298,000 226,200 298,000 99,000 $744,760 Retained earnings Total liabilities and stockholders' equity
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