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Calculate the following profitability ratios for 2024. (Round y Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio % % % times %

Calculate the following profitability ratios for 2024. (Round y Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio % % % 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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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 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 $860,000 27,000 8,200 16,000 50,000 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 Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio $3,046,000 1,952,000 1,094, 000 % % % times 961,200 $132,800 2024 $188,000 83,000 107,000 12, 200 107,000 212,000 272,000 (71,000) 910, 200 $68,000 6,400 16,000 287,000 302,000 230, 800 $910, 200 2023 $146,000 62,000 137,000 6,240 0 242,000 212,000 (44,000) $761,240 Earnings per share for the year ended December 31, 2024, are $1.20. The closing stock price on December 31, 2024, Is $27.50. Required: Calculate the following profitability ratios for 2024. (Round your answers to 1 decimal place.) $115,840 3,200 14,200 227,000 302,000 99,000 $761,240
Transcribed Image Text: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 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 $860,000 27,000 8,200 16,000 50,000 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 Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio $3,046,000 1,952,000 1,094, 000 % % % times 961,200 $132,800 2024 $188,000 83,000 107,000 12, 200 107,000 212,000 272,000 (71,000) 910, 200 $68,000 6,400 16,000 287,000 302,000 230, 800 $910, 200 2023 $146,000 62,000 137,000 6,240 0 242,000 212,000 (44,000) $761,240 Earnings per share for the year ended December 31, 2024, are $1.20. The closing stock price on December 31, 2024, Is $27.50. Required: Calculate the following profitability ratios for 2024. (Round your answers to 1 decimal place.) $115,840 3,200 14,200 227,000 302,000 99,000 $761,240
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