Saved Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,460,000 2,470,000 990,000 2024 $2,986,000 1,940,000 1,046,000 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 945,000 20,000 848,000 22,000 7,000 10,000 43,000 930,000 13,000 7,000 985,000 Net income 5,000 116,000 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 Less: Accumulated depreciation $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) $854,000 230,000 200,000 (32,000) $711,800 Total assets Liabilities and Stockholders' Equity Current liabilities: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 300,000 275,000 215,000 290,000 108,000 290,000 219,000 290,000 103,000 $711,800 Total liabilities and stockholders' equity $1,000,000 $854,000
Saved Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,460,000 2,470,000 990,000 2024 $2,986,000 1,940,000 1,046,000 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 945,000 20,000 848,000 22,000 7,000 10,000 43,000 930,000 13,000 7,000 985,000 Net income 5,000 116,000 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 Less: Accumulated depreciation $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) $854,000 230,000 200,000 (32,000) $711,800 Total assets Liabilities and Stockholders' Equity Current liabilities: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 300,000 275,000 215,000 290,000 108,000 290,000 219,000 290,000 103,000 $711,800 Total liabilities and stockholders' equity $1,000,000 $854,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Saved
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Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
2025
2024
$3,460,000
2,470,000
990,000
$2,986,000
1,940,000
1,046,000
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
945,000
20,000
13,000
7,000
985,000
5,000
848,000
22,000
7,000
10,000
43,000
930,000
116,000
Net income
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
2023
Assets
Current assets:
Cash
Accounts receivable
$196,000
70,000
120,000
13,000
$176,000
71,000
95,000
11,000
$134,000
50,000
125,000
4,800
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
95,000
290,000
290,000
(74,000)
$1,000,000
95,000
200,000
260,000
(54,000)
230,000
200,000
(32,000)
$711,800
Land
Equipment
Less: Accumulated depreciation
Total assets
$854,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
$285,000
6,000
11,000
$56,000
4,000
10,000
$88,800
2,000
13,000
300,000
275,000
215,000
Common stock
290,000
108,000
$1,000,000
290,000
219,000
$854,000
290,000
103,000
$711,800
Retained earnings
Total liabilities and stockholders' equity
Transcribed Image Text:2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
2024
2025
Gross profit ratio
%
%
Return on assets
%
%
Profit margin
Asset turnover
times
times
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