12-5A (Static) Calculate profitability ratios (LO12-4) The following income statement and balance sheets for Virtual Gaming Systems are provided. Net sales VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 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 $ 868,000 32,000 9,000 20,000 58,000 $ 3,086,000 1,960,000 1,126,000 987,000 VIRTUAL GAMING SYSTEMS $ 139,000 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 Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 Total liabilities and stockholders' equity 2024 2023 $ 196,000 91,000 115,000 $ 154,000 70,000 145,000 13,000 7,200 115,000 0 220,000 250,000 280,000 (84,000) 220,000 $ 946,000 (52,000) $ 794,200 $ 76,000 8,000 20,000 $ 91,000 4,000 15,000 295,000 235,000 310,000 310,000 237,000 139,200 $ 946,000 $ 794,200 Earnings per share for the year ended December 31, 2024, are $1.40. The closing stock price on December 31, 2024, is $28.30. Required: Calculate the following profitability ratios for 2024. (Round your answers to 1 decimal place.) Profitability Ratios 1. Gross profit ratio % 2. Return on assets % 3. Profit margin 4. Asset turnover % times 5. Return on equity % 6. Price-earnings ratio