Problem 12-5A Calculate profitability ratios (L012-4) The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,056,000 Cost of goods sold 1,954,000 Gross profit 1, 102,000 Expenses : Operating expenses $862,000 Depreciation expense 27,000 Loss on sale of land 8,400 Interest expense 17,000 Income tax expense 52,000 Total expenses 966, 400 Net income $ 135,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets Investment in bonds $190,000 85,000 109,000 12,400 $ 148,000 64,000 1139,000 6,480 109,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $190,000 85,000 109,000 12,400 $148,000 64,000 139,000 6,480 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 109,000 214,000 274,000 (23,000) $920, 400 244,000 214,000 (46,000) $769, 480 $ 70,000 6,800 17,000 118, 680 3,400 14,400 Accounts payable Interest payable Income tax payable Long-tere liabilit Notes payable Stockholders equit Common stock Retained earning Total liabilities and stockholders equity 289,000 229,000 304,000 233,00 3920,400 304,000 100,000 $269,480 per share for the year ended December 31, 2021, are $1.40. The closing stock price on December 31, 2021. is $2770 Earnings per share for the year ended Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) 1. Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover Return on equity Price-earnings ratio times 6