Earnings per share for the year ended December 31, 2021, are $1.40. The closing stock price on December 31, 2021, is $27.40. Required: Calculate the following profitability ratios for 2021. (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 References Worksheet Difficulty: 3 Hard Learning Objective: 12-04 Use ratios to analyzeThe following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,041,000 Cost of goods sold 1,951,000 Gross profit 1,090,000 Expenses: Operating expenses $859,000 Depreciation expense 27 000 Loss on sale of land 8,100 Interest expense 15,500 Income tax expense 49,000 Total expenses 958,600 Net income $ 131,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets Cash $187,000 $145,000 Accounts receivable 82,000 61,000 Inventory 106,000 136,000 Prepaid rent 12, 100 6, 120 Long-term assets Investment in bonds 106,000 Land 211,000 241,000 Equipment 271,000 211,000 Less: Accumulated depreciation (70,000) (43,000) Total assets $905, 100 $757, 120 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 67,000 114,420 Interest payable 6.200 3.100 Income tax payable 15.500 14, 100 Long-term liabilities Notes payable 286,000 226,000 Stockholders' equity Common stock 301,000 301,000 Retained earnings 229,400 98,500 Total liabilities and stockholders' equity $905, 100 $757, 120 Earnings per share for the year ended December 31, 2021, are $1.40. The closing stock price on December 31, 2021, is $27.40