Assets Current assets: Cash 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 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity oblem 12-6A (Algo) Part 1 2025 $199,500 73,500 123,500 13,700 102,000 297,000 297,000 (91,500) $1,014,700 $213,600 8,100 11,700 370,000 297,000 114,300 $1,014,700 2024 $183,000 78,000 102,000 11,700 102,000 207,000 267,000 (64,500) $886, 200 $63,000 5,400 13,500 282,000 297,000 225,300 $886,200 2023 $141,000 57,000 132,000 5,640 237,000 207,000 (39,000) $740,640 $105,740 2,700 13,700 222,000 297,000 99,500 $740,640
Assets Current assets: Cash 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 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity oblem 12-6A (Algo) Part 1 2025 $199,500 73,500 123,500 13,700 102,000 297,000 297,000 (91,500) $1,014,700 $213,600 8,100 11,700 370,000 297,000 114,300 $1,014,700 2024 $183,000 78,000 102,000 11,700 102,000 207,000 267,000 (64,500) $886, 200 $63,000 5,400 13,500 282,000 297,000 225,300 $886,200 2023 $141,000 57,000 132,000 5,640 237,000 207,000 (39,000) $740,640 $105,740 2,700 13,700 222,000 297,000 99,500 $740,640
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Required information
Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4)
[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
Net sales
Cost of goods sold
Gross profit
Expenses:
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
2025
$3,495,000
2,477,000
1,018,000
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
952,000
27,000
16,500
7,700
1,003, 200
14,800
2024
$3,021,000
1,947,000
1,074,000
855,000
25,500
7,700
13,500
46,500
948, 200
125,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db2f3ac-3ca0-4850-ac10-813504312796%2Fb567cd0c-9cb6-4a23-b44d-22899df94e70%2F053aeu1_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4)
[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
Net sales
Cost of goods sold
Gross profit
Expenses:
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
2025
$3,495,000
2,477,000
1,018,000
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
952,000
27,000
16,500
7,700
1,003, 200
14,800
2024
$3,021,000
1,947,000
1,074,000
855,000
25,500
7,700
13,500
46,500
948, 200
125,800
Transcribed Image Text:Required information
Assets
Current assets:
Cash
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
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
Problem 12-6A (Algo) Part 1
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2024
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
times
times
%
2025
times
times
2025
%
$199,500
73,500
123,500
13,700
102,000
297,000
297,000
(91,500)
$1,014,700
$213,600
8,100
11,700
370,000
297,000
114,300
$1,014,700
2024
$183,000
78,000
102,000
11,700
102,000
207,000
Required:
1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal
place.)
267,000
(64,500)
$886,200
$63,000
5,400
13,500
282,000
297,000
225,300
$886, 200
2023
$141,000
57,000
132,000
5,640
0
237,000
207,000
(39,000)
$740,640
$105,740
2,700
13,700
222,000
297,000
99,500
$740,640
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