My answers are all correct except for the Return on Assets and Asset Turnover for 2021.

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 $3,540,000 $3,066,000 Cost of goods sold 2,486,000 1,956,000 Gross profit 1,054,000 1, 110,000 Expenses: Operating expenses 961,000 864,000 Depreciation expense 36,000 30,000 Loss on sale of land 0 8,600 Interest expense 21,000 18,000 Income tax expense 8,600 51,000 Total expenses 1,026,600 971, 600 Net income $ 27,400 $ 138,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 210,000 84,000 134,000 14,600 $192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6,720 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 111,000 111,000 306,000 216,000 306,000 276,000 (114,000) (78,000) $1,051,600 $927,600 0 246,000 216,000 (48,000) $777, 720 $ 139,800 10,800 12,600 $ 72,000 7,200 18,000 $127,520 3,600 14,600 460,000 291,000 231,000 306,000 122,400 $1,051, 600 306,000 233,400 $927,600 306,000 95,000 $777, 720 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio 36.2 % 29.8% Return on assets 14.9% 2.6% Profit margin 4.5: % 0.8% Asset turnover 3.3 times 3.4 times