income Statements For the years ended December 31 2022 2021 Net sales $3,495,000 $3,021,000 Cost of goods sold 2,477,000 1,947,000 Gross profit 1,018,000 1,074,000 Expenses: Operating expenses 952,000 855,000 Depreciation expense 27,000 25,500 Loss on sale of land 0 7,700 Interest expense 16,500 13,500 Income tax expense 7,700 46,500 Total expenses 1,003, 200 9 48,200 Net income $ 14,800 $ 125,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 199,500 73,500 123,500 13,700 $183,000 78,000 102,000 11,700 $141,000 57,000 132,000 5,640 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 102,000 297,000 297,000 (91,500). $1,014,700 102,000 207,000 267,000 (64,500) $886,200 0 237,000 207,000 (39,000) $740, 640 $ 213,600 8,100 11,700 $ 63,000 5,400 13,500 $105, 740 2,700 13,700 370,000 282,000 222,000 297,000 114,300 $1,014,700 297,000 225,300 $886,200 297,000 99,500 $740,640 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 BE % tir times Asset turnover times