Required information [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 Years Ended December 31 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land i 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: Accou payable Interest payable Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 $3,500,000 2,478,000 1,022,000 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 298,000 (94,000) $1,016,800 $203,400 8,400 11,800 380,000 298,000 115,200 $1,016,800 2024 $184,000 79,000 103,000 11,800 103,000 208,000 268,000 (66,000) $890,800 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.) $64,000 5,600 14,000 283,000 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760
Required information [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 Years Ended December 31 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land i 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: Accou payable Interest payable Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 $3,500,000 2,478,000 1,022,000 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 298,000 (94,000) $1,016,800 $203,400 8,400 11,800 380,000 298,000 115,200 $1,016,800 2024 $184,000 79,000 103,000 11,800 103,000 208,000 268,000 (66,000) $890,800 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.) $64,000 5,600 14,000 283,000 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Required information
[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 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
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity.
2024
2025
$3,500,000
2,478,000
1,022,000
times
times
953,000
28,000
0
17,000
7,800
1,005,800
16,200
%
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
$3,026,000
1,948,000
1,078,000
times
times
%
856,000
26,000
7,800
14,000
47,000
950,800
127,200
2025
$200,000
74,000
124,000
13,800
103,000
298,000
$203,400
8,400
11,800
2024
103,000
208,000
298,000
268,000
(94,000) (66,000)
$1,016,800
$890,800
380,000
298,000
115,200
$1,016,800
$184,000
79,000
103,000
11,800
$64,000
5,600
14,000
283,000
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.)
298,000
226,200
$890,800
2023
$142,000
58,000
133,000
5,760
e
238,000
208,000
(40,000)
$744,760
$108,160
2,800
13,800
223,000
298,000
99,000
$744,760
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education