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Required information 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

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Required information 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. 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 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.) \begin{tabular}{|c|c|c|c|c|} \hline & VIRTUALGAMINGSYSTEMSBalanceSheetsDecember31 & 2025 & 2024 & 2023 \\ \hline \multicolumn{5}{|l|}{ Assets } \\ \hline \multicolumn{5}{|l|}{ Cunrent assets: } \\ \hline Cash & & $198,500 & $181,000 & $139,000 \\ \hline Accounts receivable & & 72,500 & 76,000 & 55,000 \\ \hline Inventory & & 122,500 & 100,000 & 130,000 \\ \hline Prepaid rent & & 13,500 & 11,500 & 5,40 \\ \hline \multicolumn{5}{|l|}{ Long-term assets: } \\ \hline Investment in bonds & & 180,800 & 100,000 & \\ \hline Land & & 295,000 & 205,000 & 235,000 \\ \hline Equpment & & 295,600 & 265,000 & 205,000 \\ \hline Less: Accumulated depreciation & & (86,500) & (61,500) & (37,ee) \\ \hline Total assets & & $1,010,500 & $877,000 & $732,400 \\ \hline \multicolumn{5}{|l|}{ Liabilities and Stockholders Equity } \\ \hline \multicolumn{4}{|l|}{ Current liabilities: } & \\ \hline AccountspayableInterestpayable & & 7,500 & 5,000 & 5100,9002,500 \\ \hline InterestpayableIncometaxpayable & & 11,500 & 12,500 & 13,500 \\ \hline \multicolumn{5}{|l|}{ Long-term liabilities: } \\ \hline Notes payable & & 350,600 & 280,000 & 220,000 \\ \hline \multicolumn{5}{|l|}{ Stockholders' equity: } \\ \hline Common stock & & 295,000 & 295,000 & 295,000 \\ \hline Retained earnings & & 112,500 & 223,500 & 100,500 \\ \hline Total liabilities and stockholders' & equity. & $1,010,500 & $877,000 & $732,400 \\ \hline \end{tabular}

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