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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 2025 $3,470,000 2,472,000 998,000 Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 947,000 22,000 0 14,000 7,200 990, 200 7,800 2024 $2,996,000 1,942,000 1,054,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 850,000 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) 2024 $178,000 73,000 97,000 11,200 97,000 202,000 262,000 (57,000) 2023 $136,000 52,000 127,000 5,040 0 232,000 202,000 (34,000)

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 2025 $3,470,000 2,472,000 998,000 Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 947,000 22,000 0 14,000 7,200 990, 200 7,800 2024 $2,996,000 1,942,000 1,054,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 850,000 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) 2024 $178,000 73,000 97,000 11,200 97,000 202,000 262,000 (57,000) 2023 $136,000 52,000 127,000 5,040 0 232,000 202,000 (34,000)

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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I need help solving for debt to equity ratio (years 2024 and 2025).

Thank you.

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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 14,000 7,200 990, 200 7,800 2024 $2,996,000 1,942,000 1,054,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 850,000 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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 14,000 7,200 990, 200 7,800 2024 $2,996,000 1,942,000 1,054,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 850,000 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
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.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio X Answer is not complete. 2024 47.9 times 17.3 times 4.9✔ % 2025 48.2 times 22.7 times 1.4✓ %
Transcribed Image Text: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.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio X Answer is not complete. 2024 47.9 times 17.3 times 4.9✔ % 2025 48.2 times 22.7 times 1.4✓ %
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