Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 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 2021 $3,560,000 $3,086,000 2,490,000 1,960,000 1,070,000 1,126,000 965,000 40,000 e 23,000 9,000 1,037,000 33,000 868,000 32,000 9,000 20,000 58,000 987,000 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 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 2022 $ 216,000 90,000 $ $196,000 91,000 140,000 115,000 15,000 13,000 2021 161,000 12,000 13,000 e 115,000 115,000 310,000 220,000 250,000 310,000 280,000 220,000 (124,000); (84,000) (52,000) $1,072,000 $946,000 $794,200 2020 $1,072,000 $154,000 70,000 145,000 7,200 $ 76,000 $ 91,000 8,000 4,000 20,000 15,000 450,000 295,000 310,000 310,000 126,000 237,000 $946,000 235,000 310,000 139,200 $794,200
Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 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 2021 $3,560,000 $3,086,000 2,490,000 1,960,000 1,070,000 1,126,000 965,000 40,000 e 23,000 9,000 1,037,000 33,000 868,000 32,000 9,000 20,000 58,000 987,000 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 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 2022 $ 216,000 90,000 $ $196,000 91,000 140,000 115,000 15,000 13,000 2021 161,000 12,000 13,000 e 115,000 115,000 310,000 220,000 250,000 310,000 280,000 220,000 (124,000); (84,000) (52,000) $1,072,000 $946,000 $794,200 2020 $1,072,000 $154,000 70,000 145,000 7,200 $ 76,000 $ 91,000 8,000 4,000 20,000 15,000 450,000 295,000 310,000 310,000 126,000 237,000 $946,000 235,000 310,000 139,200 $794,200
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
Problem 1PS
Related questions
Question
![Required Infomation
Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS
Income Statements
For the years ended December 31
2022
$3,560,e0e
2,490,e0e
1,070, eee
2021
$3,086, e00
1,960,eee
1,126,000
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
965,e00
40,000
23,000
9,000
1,837,000
%24
868,eee
32,000
9,000
20,000
58,000
987,000
$ 139,e00
Net incomce
33,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2022
2821
2020
Assets
Current assets:
Cash
Accounts receivable
$ 216,000
98,000
148, 000
15,000
$196,000
91,000
115,000
13,000
$154,000
70,000
145,e0e
7, 200
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Land
115,000
115,000
310,000
310,000
(124,000)
$1,072,000
220,000
288,ee0
(84,000)
258,ee0
220,000
Equipment
Less: Accumulated depreciation
(52,e00)
$794, 200
Total assets
$946,000
Liabilities and Stockholders Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained carnings
Total liabilitics and stockholders equity
$ 76,000
161,000
12,000
13,e00
8,000
2e,000
$ 91,000
4,000
15,000
450,000
295,000
235,000
310,000
126,000
31e,000
237,000
318,000
139.200
$794,200
$1,072,000
$946,000
Problem 12-6A Part 1
Required:
1. Colculote the following risk retios for 2021 and 2022: (Round your answers to 1 decimal place.)
2021
2022
Recevables tumover ratia
times
tirmes
Inveniory türndver ato
mes
times
Current ratio
Debt to equity talo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2F5a0b0187-b3d4-4978-a277-cef040779dc2%2F6p99i0p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Infomation
Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS
Income Statements
For the years ended December 31
2022
$3,560,e0e
2,490,e0e
1,070, eee
2021
$3,086, e00
1,960,eee
1,126,000
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
965,e00
40,000
23,000
9,000
1,837,000
%24
868,eee
32,000
9,000
20,000
58,000
987,000
$ 139,e00
Net incomce
33,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2022
2821
2020
Assets
Current assets:
Cash
Accounts receivable
$ 216,000
98,000
148, 000
15,000
$196,000
91,000
115,000
13,000
$154,000
70,000
145,e0e
7, 200
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Land
115,000
115,000
310,000
310,000
(124,000)
$1,072,000
220,000
288,ee0
(84,000)
258,ee0
220,000
Equipment
Less: Accumulated depreciation
(52,e00)
$794, 200
Total assets
$946,000
Liabilities and Stockholders Equity
Current liabilitics:
Accounts payable
Interest payable
Income tax payable
Long term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained carnings
Total liabilitics and stockholders equity
$ 76,000
161,000
12,000
13,e00
8,000
2e,000
$ 91,000
4,000
15,000
450,000
295,000
235,000
310,000
126,000
31e,000
237,000
318,000
139.200
$794,200
$1,072,000
$946,000
Problem 12-6A Part 1
Required:
1. Colculote the following risk retios for 2021 and 2022: (Round your answers to 1 decimal place.)
2021
2022
Recevables tumover ratia
times
tirmes
Inveniory türndver ato
mes
times
Current ratio
Debt to equity talo
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