Problem 12-6A (Algo) Part 22. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)Gross profit ratioReturn on assetsProfit marginAsset turnover2024%%%timesProblem 12-6A (Algo) Part 1Receivables turnover ratioInventory turnover ratioCurrent ratioDebt to equity ratioRequired:1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimalplace.)2024timestimes2025%%%%times2025timestimes% Net salesCost of goods soldGross profitExpenses:Operating expensesDepreciation expenseLoss on sale of land.Interest expenseVIRTUAL GAMING SYSTEMSIncome StatementsFor the Years Ended December 31Income tax expenseTotal expensesNet income.AssetsCurrent assets:CashAccounts receivableInventoryPrepaid rentLong-term assets:Investment in bondsLandEquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payable2025$3,495,0002,477,0001,018,000952,00027,000Stockholders' equity:Common stockRetained earningsTotal liabilities and stockholders' equity16,5007,7001,003, 20014,8002024$3,021,0001,947,0001,074,000VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31855,00025,5007,70013,50046,500948,200125,8002025$199,50073,500123,50013,700102,000297,000297,000(91,500)$1,014,700$213,6008,10011,700370,000297,000114,300$1,014,7002024$183,00078,000102,00011,700102,000207,000267,000(64,500)$886, 200$63,0005,40013,500282,000297,000225,300$886, 2002023$141,00057,000132,0005,6400237,000207,000(39,000)$740, 640$105,7402,70013,700222,000297,00099,500$740,640

The current ratio is calculated as current assets divided by the current liabilities of the current…

Problem 12-6A (Algo) Part 2 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 Problem 12-6A (Algo) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decima place.) times times 2025 % % % times 2025 times times %

Problem 12-6A (Algo) Part 2 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 Problem 12-6A (Algo) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decima place.) times times 2025 % % % times 2025 times times %

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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Question

Problem 12-6A (Algo) Part 2
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
Problem 12-6A (Algo) Part 1
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
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.)
2024
times
times
2025
%
%
%
%
times
2025
times
times
%

Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses
Depreciation expense
Loss on sale of land.
Interest expense
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
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
$3,495,000
2,477,000
1,018,000
952,000
27,000
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
16,500
7,700
1,003, 200
14,800
2024
$3,021,000
1,947,000
1,074,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
855,000
25,500
7,700
13,500
46,500
948,200
125,800
2025
$199,500
73,500
123,500
13,700
102,000
297,000
297,000
(91,500)
$1,014,700
$213,600
8,100
11,700
370,000
297,000
114,300
$1,014,700
2024
$183,000
78,000
102,000
11,700
102,000
207,000
267,000
(64,500)
$886, 200
$63,000
5,400
13,500
282,000
297,000
225,300
$886, 200
2023
$141,000
57,000
132,000
5,640
0
237,000
207,000
(39,000)
$740, 640
$105,740
2,700
13,700
222,000
297,000
99,500
$740,640

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