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 The income statement and balance sheets for Worlds of Fun are provided below: WORLDS OF FUN Income Statement For the Year Ended December 31, 2024 Sales revenue Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,488,700 1,560,000 928,700 346,000 66,000 4,700 23,000 57,000 496,700 $432,000 WORLDS OF FUN Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment $127,000 $106,000 98,000 77,000 150,000 130,000 10,000 10,000 280,000 220,000 420,000 270,000 Accumulated depreciation (75,000) (40,000) Total assets $1,010,000 $773,000 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 equity $53,000 8,300 16,000 $72,000 7,300 13,000 430,000 330,000 270,000 270,000 232,700 $1,010,000 80,700 $773,000 Earnings per share for the year ended December 31, 2024, is $1.60. The closing stock price on December 31, 2024, is $36.50