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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
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. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Assets } \\ \hline \multicolumn{4}{|l|}{\begin{tabular}{l} Assets \\ Current assets: \end{tabular}} \\ \hline Cash & $200,000 & $184,000 & $142,000 \\ \hline Accounts receivable & 74,000 & 79,000 & 58,000 \\ \hline Inventory & 124,000 & 103,000 & 133,000 \\ \hline Prepaid rent & 13,800 & 11,800 & 5,760 \\ \hline \multicolumn{4}{|l|}{ Long-term assets: } \\ \hline Investment in bonds & 103,000 & 103,000 & 0 \\ \hline Land & 298,000 & 208,000 & 238,000 \\ \hline Equipment & 298,000 & 268,000 & 208,000 \\ \hline Less: Accumulated depreciation & (94,000) & (66,000) & (40,000) \\ \hline Total assets & $1,016,800 & $890,800 & $744,760 \\ \hline \multicolumn{4}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{4}{|l|}{ Current liabilities: } \\ \hline Accounts payable & $203,400 & $64,000 & $108,160 \\ \hline Interest payable & 8,400 & 5,600 & 2,800 \\ \hline Income tax payable & 11,800 & 14,000 & 13,800 \\ \hline \multicolumn{4}{|l|}{ Long-term liabilities: } \\ \hline Notes payable & 380,000 & 283,000 & 223,000 \\ \hline \multicolumn{4}{|l|}{ Stockholders' equity: } \\ \hline Common stock & 298,000 & 298,000 & 298,000 \\ \hline Retained earnings & 115,200 & 226,200 & 99,000 \\ \hline Total liabilities and stockholders' equity & $1,016,800 & $890,800 & $744,760 \\ \hline \end{tabular} Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
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