Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income S

[answerhappygod]

Income Statements And Balance Sheets Data For Virtual Gaming Systems Are Provided Below Virtual Gaming Systems Income S 1 (78.77 KiB) Viewed 88 times

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 $3,006,000 Net sales $3,480,000 2,474,000 1,944,000 Cost of goods sold i Gross profit 1,006,000 1,062,000 Expenses: 949,000 852,000 24,000 24,000 0 7,400 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 15,000 12,000 7,400 45,000 995,400 940,400 Net income 10,600 121,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash $198,000 $180,000 $138,000 Accounts receivable 72,000 75,000 54,000 Inventory 122,000 99,000 Prepaid rent 129,000 5,280 13,400 11,400 Long-term assets: Investment in bonds 99,000 99,000 0 Land 294,000 204,000 234,000 Equipment 294,000 264,000 204,000 Less: Accumulated depreciation (84,000) (60,000) (36,000) Total assets $1,008,400 $872,400 $728,280 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $244,200 $60,000 $98,480 Interest payable 7,200 4,800 2,400 Income tax payable 11,400 12,000 13,400 Long-term liabilities: Notes payable 340,000 279,000 219,000 Stockholders' equity: Common stock 294,000 294,000 111,600 294,000 Retained earnings: 222,600 101,000 Total liabilities and stockholders' equity $1,008,400 $872,400 $728,280 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 2025 Receivables turnover ratio times times times times Inventory turnover ratio Current ratio Debt to equity ratio % %
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 $3,480,000 Net sales Cost of goods sold $3,006,000 1,944,000 2,474,000 Gross profit 1,006,000 1,062,000 Expenses: Operating expenses 852,000 949,000 24,000 24,000 Depreciation expense Loss on sale of land i Interest expense 0 7,400 15,000 12,000 7,400 45,000 Income tax expense Total expenses Net income 995,400 940,400 10,600 121,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 Assets Current assets: Cash $180,000 $198,000 72,000 Accounts receivable 75,000 Inventory 122,000 99,000 Prepaid rent 13,400 11,400 Long-term assets: Investment in bonds 99,000 99,000 Land 294,000 204,000 Equipment 294,000 264,000 Less: Accumulated depreciation (84,000) (60,000) Total assets $1,008,400 $872,400 $728,280 Liabilities and Stockholders' Equity Current liabilities: $60,000 $98,480 Accounts payable Interest payable $244,200 7,200 4,800 2,400 11,400 12,000 13,400 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 340,000 279,000 219,000 Common stock 294,000 294,000 Retained earnings 294,000 111,600 222,600 101,000 Total liabilities and stockholders' equity $1,008,400 $872,400 $728,280 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio 35.3% 28.9 % Return on assets % Profit margin % Asset turnover times *** % % times 2023 $138,000 54,000 129,000 5,280 234,000 204,000 (36,000)