Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,545,000 2,487,000 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 Net income 2024 $3,071,000 1,957,000 1,058,000 1,114,000 962,000 865.000 37,000 30,500 0 8,700 21,500 18,500 8,700 51,500 1,029,200 974,200 139,800 28,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Equipment $211,500 $193,000 85,500 88,000 $151,000 67,000 135,500 112,000 142,000 14,700 12,700 6,840 112,000 112,000 0 307,000 217,000 247,000 307,000 277,000 217,000 Less: Accumulated depreciation (116,500) (79,500) (49,000) Total assets $1,056,700 $932,200 $781,840 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $132,600 $73,000 $129,940 Interest payable 11,100 7,400 3,700 Income tax payable 12,700 18,500 14,700 Long-term liabilities: Notes payable 470,000 292,000 232,000 Stockholders' equity: Common stock 307,000 307,000 307,000 Retained earnings 123,300 234,300 94,500 Total liabilities and stockholders' equity $1,056,700 $932,200 $781,840 Problem 12-6A (Algo) Part 2 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times
Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,545,000 2,487,000 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 Net income 2024 $3,071,000 1,957,000 1,058,000 1,114,000 962,000 865.000 37,000 30,500 0 8,700 21,500 18,500 8,700 51,500 1,029,200 974,200 139,800 28,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Equipment $211,500 $193,000 85,500 88,000 $151,000 67,000 135,500 112,000 142,000 14,700 12,700 6,840 112,000 112,000 0 307,000 217,000 247,000 307,000 277,000 217,000 Less: Accumulated depreciation (116,500) (79,500) (49,000) Total assets $1,056,700 $932,200 $781,840 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $132,600 $73,000 $129,940 Interest payable 11,100 7,400 3,700 Income tax payable 12,700 18,500 14,700 Long-term liabilities: Notes payable 470,000 292,000 232,000 Stockholders' equity: Common stock 307,000 307,000 307,000 Retained earnings 123,300 234,300 94,500 Total liabilities and stockholders' equity $1,056,700 $932,200 $781,840 Problem 12-6A (Algo) Part 2 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dineshbhai
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
2025
$3,545,000
2,487,000
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
Net income
2024
$3,071,000
1,957,000
1,058,000
1,114,000
962,000
865.000
37,000
30,500
0
8,700
21,500
18,500
8,700
51,500
1,029,200
974,200
139,800
28,800
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
2023
Land
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Equipment
$211,500
$193,000
85,500
88,000
$151,000
67,000
135,500
112,000
142,000
14,700
12,700
6,840
112,000
112,000
0
307,000
217,000
247,000
307,000
277,000
217,000
Less: Accumulated depreciation
(116,500)
(79,500)
(49,000)
Total assets
$1,056,700
$932,200
$781,840
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$132,600
$73,000
$129,940
Interest payable
11,100
7,400
3,700
Income tax payable
12,700
18,500
14,700
Long-term liabilities:
Notes payable
470,000
292,000
232,000
Stockholders' equity:
Common stock
307,000
307,000
307,000
Retained earnings
123,300
234,300
94,500
Total liabilities and stockholders' equity
$1,056,700
$932,200
$781,840
Problem 12-6A (Algo) Part 2
2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
2024
2025
Gross profit ratio
%
%
Return on assets
%
%
Profit margin
%
%
Asset turnover
times
times
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