Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022

image text in transcribedimage text in transcribedimage text in transcribed

Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales Cost of goods sold Gross profit Expenses Operating expenses Depreciation expense Loss on sale of land $3,475,000 2,473,000 1,002,000 $3,001,000 1,943,000 1,058,000 948,000 23,000 851,000 23,500 7,300 11,500 C Interest expense Income tax expense Total expenses 14,500 7,300 992,800 44,500 937,800 9,200 120,200 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2020 2021 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $179,000 74,000 97,500 71,500 121,500 13,300 S $137,000 53,000 128,000 5,160 98,000 11,300 98,000 293,000 293,000 (81,500) 98,000 203,000 263,000 (58,500) 0 Land 233,000 Equipment Less: Accumulated depreciation 203,000 (35,000) $724,160 $1,006,300 $867,800 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 96,060 2,300 13,300 $ 59,000 4,600 11,500 S 254,400 6,900 11,300 ayable Interest Income tax payable Long-term liabilities: Notes Stockholders' equity: Common stock Retained earnings 330,000 278,000 ayable 218,000 293,000 101,500 293,000 110,700 293,000 221,700 Total liabilities and stockholders' equity $1,006,300 $867,800 $724,160 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 times times Receivables turnover ratio times Inventory turnover ratio times to 1 Current ratio to 1 % Debt to equity ratio 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago