Data for Virtual Gaming Systems are provided in P124A. Earnings per share for the year ended December

Data for Virtual Gaming Systems are provided in P12–4A. Earnings per share for the year ended December 31, 2015, are $1.40. The closing stock price on December 31, 2015, is $28.30.

In P12–4A, The following income statement and balance sheets for Virtual Gaming Systems are provided.

Required:
Calculate the following profitability ratios for 2015.
1. Gross profit ratio.
2. Return on assets.
3. Profit margin.
4. Asset turnover.
5. Return on equity.
6. Price-earningsratio.

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VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015 Net sales Cost of goods sold $3,086,000 1960000 1,126,000 Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $868,000 32,000 9,000 20,000 58,000 Total expenses 987,000 $139,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets 2015 2014 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 115,000 220,000 280,000 250,000 220,000 (52,000) $794 200 Total assets Liabilities and Stockholders' E Current liabilities Accounts payable Interest payable S 76,000 8,000 20,000 $91,000 4,000 15,000 Income tax payable Long-term liabilities: Notes payable Stockholders equity: Common stock 295,000 235,000 310,000 237,000 310,000 139,200 $794200 Retained earnings Total liabilities and stockholders' equity