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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

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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 $3,470,000 $2,996,000 Cost of goods sold 2 , 472 , 1,942,000 Gross profit 998 , 1,054,000 Expenses: Operating expenses 947,000 85 , Depreciation expense 22,000 23,000 Loss on sale of land 7,200 Interest expense 14 , 11, Income tax expense 7,200 44 , Total expenses 990, 200 935, 200 Net income 7,800 $ 118,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $ 197,000 $178,000 71,eee 73,000 121,080 97,000 13,200 11,200 $136,00 52,000 127,eee 5,040 97 , 97,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 197,000 $178,000 $136,000 71,000 73,000 52,000 121,000 97,000 127 , 13,200 11,200 5,040 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 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 97 , 97,000 @ 292,000 22 , 232,000 292,000 262 , 202, ( 79 , ) ( 57 , ) . ( 34 , ) $1,004,200 $863,200 $720,040 264,600 $ 58,000 $ 93,640 6,600 4,400 2,200 11,200 11,000 13, 200 32 , 292,000 109,800 $1,004,200 277 , 217 , 292 , 292 , 220, 800 12 , $863,200 $720, 040 $1,004,200 $863,200 $720,040 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 $ 264,600 $ 58,eee $ 93,640 6,600 4,400 2,200 11,200 11,000 13,200 320,000 277,800 217,000 292,000 292,000 292 , 109,800 220, 800 102,000 $1,004,200 $863,200 $720, 040 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 % % Gross profit ratio Return on assets Profit margin Asset turnover 2022 % % % % times times

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