Answered step by step
Verified Expert Solution
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
Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Net sales 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 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 2025 $3,480,000 2024 $3,006,000 2,474,000 1,944,000 1,006,000 1,062,000 949,000 852,000 24,000 24,000 0 7,400 15,000 12,000 7,400 45,000 995,400 940,400 10,600 121,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 $198,000 $180,000 $138,000 72,000 75,000 122,000 99,000 54,000 129,000 13,400 11,400 5,280 99,000 99,000 294,000 204,000 234,000 294,000 264,000 204,000 (84,000) (60,000) (36,000) $1,008,400 $872,400 $728,280 Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $244,200 7,200 11,400 $60,000 4,800 12,000 $98,480 2,400 13,400 340,000 279,000 219,000 Stockholders' equity: Common stock 294,000 294,000 294,000 Retained earnings. 111,600 Total liabilities and stockholders' equity $1,008,400 222,600 $872,400 101,000 $728,280 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started