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Business
Accounting
Net sales Cost of goods sold Gross profit Expenses: For the Years Ended December 31 2025 $ 3,560,000 2,490,000 1,070,000 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 Problem 12-6A (Static) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 965,000 40,000 0 23,000 9,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 38.3 times 15.1 times 1,037,000 $ 33,000 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $ 3,086,000 1,960,000 1,126,000 2025 39.3 times 19.5 times 868,000 32,000 9,000 20,000 58,000 987,000 $ 139,000 % 2025 $ 216,000 90,000 140,000 15,000 115,000 310,000 310,000 (124,000) $ 1,072,000 $ 161,000 12,000 13,000 450,000 310,000 126,000 $ 1,072,000 2024 $ 196,000 91,000 115,000 13,000 115,000 220,000 280,000 (84,000) $ 946,000 $ 76,000 8,000 20,000 295,000 310,000 237,000 $ 946,000 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.) 2023 $ 154,000 70,000 145,000 7,200 0 250,000 220,000 (52,000) $ 794,200 $ 91,000 4,000 15,000 235,000 310,000 139,200 $ 794,200

Net sales Cost of goods sold Gross profit Expenses: For the Years Ended December 31 2025 $ 3,560,000 2,490,000 1,070,000 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 Problem 12-6A (Static) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 965,000 40,000 0 23,000 9,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 38.3 times 15.1 times 1,037,000 $ 33,000 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $ 3,086,000 1,960,000 1,126,000 2025 39.3 times 19.5 times 868,000 32,000 9,000 20,000 58,000 987,000 $ 139,000 % 2025 $ 216,000 90,000 140,000 15,000 115,000 310,000 310,000 (124,000) $ 1,072,000 $ 161,000 12,000 13,000 450,000 310,000 126,000 $ 1,072,000 2024 $ 196,000 91,000 115,000 13,000 115,000 220,000 280,000 (84,000) $ 946,000 $ 76,000 8,000 20,000 295,000 310,000 237,000 $ 946,000 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.) 2023 $ 154,000 70,000 145,000 7,200 0 250,000 220,000 (52,000) $ 794,200 $ 91,000 4,000 15,000 235,000 310,000 139,200 $ 794,200

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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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 For the Years Ended December 31 2025 $ 3,560,000 2,490,000 1,070,000 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 Problem 12-6A (Static) Part 1 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 965,000 40,000 0 23,000 9,000 1,037,000 $ 33,000 2024 38.3 times 15.1 times % 2024 $ 3,086,000 1,960,000 1,126,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 39.3 times 19.5 times 868,000 32,000 % 9,000 20,000 58,000 987,000 $ 139,000 2025 $ 216,000 90,000 140,000 15,000 115,000 310,000 310,000 (124,000) $ 1,072,000 $ 161,000 12,000 13,000 450,000 310,000 126,000 $ 1,072,000 2024 $ 196,000 91,000 115,000 13,000 115,000 220,000 280,000 (84,000) $ 946,000 $ 76,000 8,000 20,000 295,000 310,000 237,000 $ 946,000 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.) 2023 $ 154,000 70,000 145,000 7,200 0 250,000 220,000 (52,000) $ 794,200 $ 91,000 4,000 15,000 235,000 310,000 139,200 $ 794,200
Transcribed Image Text: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 For the Years Ended December 31 2025 $ 3,560,000 2,490,000 1,070,000 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 Problem 12-6A (Static) Part 1 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 965,000 40,000 0 23,000 9,000 1,037,000 $ 33,000 2024 38.3 times 15.1 times % 2024 $ 3,086,000 1,960,000 1,126,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 39.3 times 19.5 times 868,000 32,000 % 9,000 20,000 58,000 987,000 $ 139,000 2025 $ 216,000 90,000 140,000 15,000 115,000 310,000 310,000 (124,000) $ 1,072,000 $ 161,000 12,000 13,000 450,000 310,000 126,000 $ 1,072,000 2024 $ 196,000 91,000 115,000 13,000 115,000 220,000 280,000 (84,000) $ 946,000 $ 76,000 8,000 20,000 295,000 310,000 237,000 $ 946,000 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.) 2023 $ 154,000 70,000 145,000 7,200 0 250,000 220,000 (52,000) $ 794,200 $ 91,000 4,000 15,000 235,000 310,000 139,200 $ 794,200
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