Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: VIRTUM GARING SYSTERS
Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: VIRTUM GARING SYSTERS Income Statements For the Years Inded December 31 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2025 $3,465,000 2,471,000 2014 $2,991,000 1,941,000 994,000 1,050,000 946,000 849,000 21,000 22,500 O 7,100 13,500 10,500 7,100 43,500 987,600 932,600 117,400 Assets Current assets 6,400 VIRTUAL GAMING SYSTERS Balance Sheets December 31 2025 2024 2023 VIRTUAL GAMING SYSTEMS Balance Sheets December 11TON 2025 2024 2023 Assets Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment $196,500 $177,000 $135,000 70,500 72,000 51,000 120,500 96,000 126,000 13,100 11,100 4,920 96,000 96,000 0 291,000 201,000 231,000 291,000 261,000 201,000 Less: Accumulated depreciation (76,500) (55,500) (33,000) Total assets $1,002,100 $858,600 $715,920 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $274,800 $57,000 $91,220 Interest payable. 6,300 4,200 2,100 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 11,100 10,500 13,100 310,000 276,000 216,000 291,000 291,000 291,000 108,5 ,900 219,900 102,500 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 times tamers Inventory turnover ratio times ames Current ratio Debt to equity ratio S 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 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
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