n equired information Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below] Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2825 $3,535,000 2,485,000 2024 $3,061,000 1,955,000 1,050,000 1,106,000 960,000 863,000 35,000 29,500 e 8,500 20,500 17,500 8,500 50,500 1,024,000 969,000 26,000 137,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Long-term assets: Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Investment in bonds Equipment $208,500 82,500 $191,000 $149,000 86,000 65,000 132,500 110,000 140,000 14,500 12,500 6,600 110,000 110,000 305,000 215,000 245,000 305,000 275,000 215,000 Less: Accumulated depreciation (111,580) (76,500) (47,000) Total assets $1,046,500 $923,000 $773,600 Liabilities and stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $147,000 10,500 12,500 $71,000 $125,100 7,000 17,500 3,500 14,500 450,000 290,000 230,000 stockholders' equity: Common stock 305,000 Retained earnings 121,500 305,000 232,500 305,000 95,500 Total liabilities and stockholders' equity $1,046,500 $923,000 $773,600 Problem 12-6A (Algo) Part 2 Q Search < Prev