$!$ Required:

Assuming that all sales were on account, calculate the following risk ratios for $2024$ and $2025$: $($Round your answers to $1$ decimal

place.$)$ Calculate the following profitability ratios for $2024$ and $2025$: $($Round your answers to $1$ decimal place.$)$

Required Information

Problem $12-6$A $($Algo$)$ Use ratios to analyze risk and profitability $($LO$12-3,12-4)$

$[$The following information applies to the questions displayed below.$]$

Income statements and balance sheets data for Virtual Gaming Systems are provided below.

$\backslash$table$[[\backslash$table$[[$VIRTUAL GAMING SYSTEMS$],[$Income Statements$]]],[,2025,2$B$24],[$Net sales,$$3,550,0\backslash$theta $,$$$3,076,00\backslash$theta $],[$Cost of goods sold,$2,488,\backslash$theta $\backslash$theta $,1,958,\backslash$theta $\backslash$Theta $-],[$Gross profit,$1,962,000,1,118,00\backslash$theta $],[$Expenses:$],[$Operating expenses,$963,000,866,900],[$Depreciation expense,$38,$o$+\backslash$theta $,31,90\backslash$theta $],[$Loss on sale of land,$\backslash$theta $,8,800],[$Interest expense,$22,\backslash$theta $,19,00\backslash$theta $],[$Income tax expense,$8,800,52,000],[$Total expenses,$1,931,80\backslash$Theta $,976,800],[$Net income,$30,200,141,200]]$

$\backslash$table$[[\backslash$table$[[$VIRTUAL GAMING SYSTEMS$],[$Balance Sheets$],[$December $31]]],[$Assets$],[$Current assets:$],[$Cash$,$$$213,\backslash$theta $0\backslash$theta $,$$$194,\backslash$theta $0,$$$152,\backslash$theta $00],[$Accounts receivable,$87,\backslash$theta $00,89,,68,0],[$Inventory$,137,000,113,000,143,000],[$Prepaid rent,$14,800,12,800,6,960],[$Long$-$term assets:$],[$Investment in bonds,$113,\backslash$theta $00,113,\backslash$theta $0,\backslash$theta $],[$Land$,308,000,218,\backslash$theta $0,248,\backslash$theta $],[$Equipment$,308,\backslash$theta $00,278,\backslash$theta $0,218,],[$Less: Accumulated depreciation,$(119,00),(81,\backslash$theta $00),(50,\backslash$theta $0\backslash$theta $)],[$Total assets,$$1,061,800,$$$936,800,$$$785,960],[$Liabilities and Stockholders' Equity$],[$Current liabilities:$],[$Accounts payable,$$125,400,$$$74,0\backslash$Theta $,$$$132,360],[$Interest payable,$11,400,7,600,3,800],[$Income tax payable,$12,800,19,\backslash$theta $0,14,80],[$Long$-$term liabilities:$],[$Notes payable,$480,\backslash$theta $\backslash$Theta $,293,,233,90]],[$Stockholders $\text{'}$ equity:$],[$Common stock,$308,\backslash$theta $\backslash$Theta $,308,\backslash$theta $\backslash$Theta $,308,00\backslash$Theta $],[$Retained earnings,$124,200,235,200,94,000],[$Total liabilities and stockholders' equity,$$1,961,800,$$$936,800,$$$785,960]]$