! 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 2025 $3,475,000 2024 $3,001,000 2,473,000 1,943,000 1,002,000 1,058,000 948,000 851,000 23,000 23,500 Ө 7,300 14,500 11,500 7,300 44,500 992,800 937,800 9,200 120,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment $197,500 71,500 $179,000 $137,000 74,000 53,000 121,500 98,000 128,000 13,300 11,300 5,160 98,000 98,000 293,000 203,000 233,000 293,000 263,000 203,000 Less: Accumulated depreciation (81,500) (58,500) (35,000) Total assets $1,006,300 $867,800 $724,160 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 $254,400 6,900 11,300 $59,000 $96,060 4,600 11,500 2,300 13,300 330,000 278,000 218,000 293,000 293,000 293,000 110,700 221,700 101,500 $1,006,300 $867,800 $724,160 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.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times % %
! 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 2025 $3,475,000 2024 $3,001,000 2,473,000 1,943,000 1,002,000 1,058,000 948,000 851,000 23,000 23,500 Ө 7,300 14,500 11,500 7,300 44,500 992,800 937,800 9,200 120,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment $197,500 71,500 $179,000 $137,000 74,000 53,000 121,500 98,000 128,000 13,300 11,300 5,160 98,000 98,000 293,000 203,000 233,000 293,000 263,000 203,000 Less: Accumulated depreciation (81,500) (58,500) (35,000) Total assets $1,006,300 $867,800 $724,160 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 $254,400 6,900 11,300 $59,000 $96,060 4,600 11,500 2,300 13,300 330,000 278,000 218,000 293,000 293,000 293,000 110,700 221,700 101,500 $1,006,300 $867,800 $724,160 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.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rahul
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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
2025
$3,475,000
2024
$3,001,000
2,473,000
1,943,000
1,002,000
1,058,000
948,000
851,000
23,000
23,500
Ө
7,300
14,500
11,500
7,300
44,500
992,800
937,800
9,200
120,200
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
2023
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Land
Equipment
$197,500
71,500
$179,000
$137,000
74,000
53,000
121,500
98,000
128,000
13,300
11,300
5,160
98,000
98,000
293,000
203,000
233,000
293,000
263,000
203,000
Less: Accumulated depreciation
(81,500)
(58,500)
(35,000)
Total assets
$1,006,300
$867,800
$724,160
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
$254,400
6,900
11,300
$59,000
$96,060
4,600
11,500
2,300
13,300
330,000
278,000
218,000
293,000
293,000
293,000
110,700
221,700
101,500
$1,006,300
$867,800
$724,160
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.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2024
2025
times
times
times
times
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b18ee1f-871f-468c-b6f7-324daa83361e%2Fde07d2c1-b32e-4699-aab5-b995b5ce2ec2%2F5ljc4zr_processed.jpeg&w=3840&q=75)
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
2025
$3,475,000
2024
$3,001,000
2,473,000
1,943,000
1,002,000
1,058,000
948,000
851,000
23,000
23,500
Ө
7,300
14,500
11,500
7,300
44,500
992,800
937,800
9,200
120,200
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
2023
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Land
Equipment
$197,500
71,500
$179,000
$137,000
74,000
53,000
121,500
98,000
128,000
13,300
11,300
5,160
98,000
98,000
293,000
203,000
233,000
293,000
263,000
203,000
Less: Accumulated depreciation
(81,500)
(58,500)
(35,000)
Total assets
$1,006,300
$867,800
$724,160
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
$254,400
6,900
11,300
$59,000
$96,060
4,600
11,500
2,300
13,300
330,000
278,000
218,000
293,000
293,000
293,000
110,700
221,700
101,500
$1,006,300
$867,800
$724,160
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.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2024
2025
times
times
times
times
%
%
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