2021 $3,061,000 1,955,000 1,106,000 VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 Net sales $3,535,000 Cost of goods sold 2,485,000 Gross profit 1,050,000 Expenses: Operating expenses 960,000 Depreciation expense 35,000 Loss on sale of land Interest expense 20,500 Income tax expense 8,500 Total expenses 1,024,000 Net income $ 26,000 863,000 29,500 8,500 17,500 50,500 969,000 137,000 $ VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 208,500 82,500 132,500 14,500 $191,000 86,000 110,000 12,500 $149,000 65,000 140,000 6,600 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: 110,000 305,000 305,000 (111,500) $1,046,500 110,000 215,000 275,000 (76,500) $923,000 245,000 215,000 (47,000) $773,600 LUULLILIC Ulu JLUCRUIUIULIJ $ 147,000 10,500 12,500 $ 71,000 7,000 17,500 $125,100 3,500 14,500 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 450,000 290,000 230,000 305,000 121,500 $1,046,500 305,000 232,500 $923,000 305,000 95,500 $773,600 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio Return on assets Profit margin Asset turnover times times