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Net sales VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense
Net sales VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense $3,046,000 1,952,000 1,094,000 $860,000 27,000 Loss on sale of land Interest expense Income tax expense Total expenses Net income 8,200 16,000 50,000 961,200 $ 132,800 Assets Current assets: VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 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 $188,000 $146,000 83,000 62,000 107,000 137,000 12,200 6,240 107,000 0 212,000 242,000 272,000 212,000 (71,000) (44,000) $910,200 $761,240 $ $ 68,000 115,840 6,400 3,200 16,000 14,200 287,000 227,000 Stockholders' equity: Common stock 302,000 302,000 Retained earnings 230,800 99,000 Total liabilities and stockholders' equity $910,200 $761,240 Earnings per share for the year ended December 31, 2021, are $1.20. The closing stock price on December 31, 2021, is $27.50. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) Profitability Ratios 1. Gross profit ratio % 2. Return on assets % 3. Profit margin % 4. Asset turnover times 5. Return on equity % 6. Price-earnings ratio
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