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 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 2025 $3,520,000 2,482,000 1,038,000 957,000 32,000 0 19,000 8,200 1,016, 200 21,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $3,046,000 1,952,000 1,094,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 860,000 28,000 8,200 16,000 49,000 961,200 132,800 2025 $204,000 78,000 128,000 14,200 107,000 302,000 302,000 (104,000) $1,031, 200 $168,600 9,600 12, 200 420,000 302,000 118,800 $1,031, 200 2024 $188,000 83,000 107,000 12, 200 107,000 212,000 272,000 (72,000) $909, 200 $68,000 6,400 16,000 287,000 302,000 229,800 $909, 200 2023 $146,000 62,000 137,000 6,240 0 242,000 212,000 (44,000) $761,240 $117,840 3,200 14,200 227,000 302,000 97,000 $761,240
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 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 2025 $3,520,000 2,482,000 1,038,000 957,000 32,000 0 19,000 8,200 1,016, 200 21,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $3,046,000 1,952,000 1,094,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 860,000 28,000 8,200 16,000 49,000 961,200 132,800 2025 $204,000 78,000 128,000 14,200 107,000 302,000 302,000 (104,000) $1,031, 200 $168,600 9,600 12, 200 420,000 302,000 118,800 $1,031, 200 2024 $188,000 83,000 107,000 12, 200 107,000 212,000 272,000 (72,000) $909, 200 $68,000 6,400 16,000 287,000 302,000 229,800 $909, 200 2023 $146,000 62,000 137,000 6,240 0 242,000 212,000 (44,000) $761,240 $117,840 3,200 14,200 227,000 302,000 97,000 $761,240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
Gross profit ratio
Return on assets
Profit margin
Asset turnover
2024
%
%
%
times
2025
%
%
times
Transcribed Image Text:Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
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
Income tax payable
Long-term liabilities:
Notes payable
2025
$3,520,000
2,482,000
1,038,000
957,000
32,000
0
19,000
8,200
1,016, 200
21,800
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2024
$3,046,000
1,952,000
1,094,000
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
860,000
28,000
8,200
16,000
49,000
961,200
132,800
2025
$204,000
78,000
128,000
14,200
107,000
302,000
302,000
(104,000)
$1,031, 200
$168,600
9,600
12,200
420,000
302,000
118,800
$1,031,200
2024
$188,000
83,000
107,000
12,200
107,000
212,000
272,000
(72,000)
$909, 200
$68,000
6,400
16,000
287,000
302,000
229,800
$909, 200
2023
$146,000
62,000
137,000
6,240
0
242,000
212,000
(44,000)
$761,240
$117,840
3,200
14, 200
227,000
302,000
97,000
$761,240
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