Required: 1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover
Required: 1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS Income Statements
For the year ended December 31
Net sales
Cost of goods sold
Gross Profit
Expenses:
Operating Expenses
Depreciation expenses
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investment 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
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders'
equity
2019
3,470,000
2,472,000
998,000
Gross profit ratio
Return on assets
Profit margin
Asset turnover
947,000
22,000
0
14,000
7,200
990,200
7,800
2019
2018
2,996,000
1,942,000
1,054,000
850,000
11,200
23,000
7,200
11,000
44,000
935,200
118,800
2018
2017
197,000 178,000 136,000
71,000 73,000 52,000
121,000 97,000
127,000
13,200
11,200
5,040
97,000
292,000
292,000 262,000 202,000
(79,000) (57,000) (34,000)
1,004,200 863,200 720,040
97,000 0
202,000 232,000
264,600 58,000 93,640
6,600
4,400 2,200
11,000 13,200
320,000 277,000 217,000
292,000 292,000 292,000
109,800 220,800 102,000
1,004,200 863,200 720,040
Required:
1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F763b6b0a-ab7e-4c49-8373-434061f95ee9%2F2d83501e-4315-4c3b-8f4b-2b4328d6d2f8%2Fi0byw3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS Income Statements
For the year ended December 31
Net sales
Cost of goods sold
Gross Profit
Expenses:
Operating Expenses
Depreciation expenses
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investment 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
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders'
equity
2019
3,470,000
2,472,000
998,000
Gross profit ratio
Return on assets
Profit margin
Asset turnover
947,000
22,000
0
14,000
7,200
990,200
7,800
2019
2018
2,996,000
1,942,000
1,054,000
850,000
11,200
23,000
7,200
11,000
44,000
935,200
118,800
2018
2017
197,000 178,000 136,000
71,000 73,000 52,000
121,000 97,000
127,000
13,200
11,200
5,040
97,000
292,000
292,000 262,000 202,000
(79,000) (57,000) (34,000)
1,004,200 863,200 720,040
97,000 0
202,000 232,000
264,600 58,000 93,640
6,600
4,400 2,200
11,000 13,200
320,000 277,000 217,000
292,000 292,000 292,000
109,800 220,800 102,000
1,004,200 863,200 720,040
Required:
1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)
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