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 $3,515,000 $3,041,000 Cost of goods sold 2,481,000 1,951,000 Gross profit 1,034,000 1,090,000 Expenses: Operating expenses 956,000 859,000 Depreciation expense 31,000 27,500 LOSs on sale of land 0 8,100 Interest expense 18,500 15,500 Income cax expense 8,100 48,500 Total expenses 1,013, 600 958, 600 Net income $ 20,400 $ 131,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 202,500 76,500 126,500 14,100 $ 187,000 82,000 106,000 12,100 $145,000 61,000 136,000 6,120 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: Accounts payable Interest payable 106,000 301,000 301,000 (101,500) $1,026,100 106,000 211,000 271,000 (70,500) $904,600 0 241,000 211,000 (43,000) $ 757,120 $ 175, 800 9,300 $ 67,000 6,200 $115,420 3,100 14,100 12,100 6,120 106,000 106,000 301,000 211,000 301,000 271,000 (101,500) (70,500) $1,026,100 $904,600 0 241,000 211,000 (43,000) $ 757, 120 Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity 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 $ 175,800 9,300 12,100 $ 67,000 6, 200 15,500 $115,420 3,100 14,100 410,000 286,000 226,000 301,000 117,900 $1,026,100 301,000 228,900 $904,600 301,000 97,500 $ 757,120 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2021 35.8% 15.8% % 2022 29.4% 2.1 % % 3.6 times 3.6 times