Required information Problem 12-6A Use ratios to analyze risk and profitability (L012-3, 12-4) [The following information applies to the questions displayed below) Income statements and balance sheets data for Virtual Gaming Systems are provided below VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2021 Net sales 2022 $3,500,000 $3,026,000 Cost of goods 2,478,000 1,948,000 sold Gross 1,022,000 1,078,000 profit Expenses: 953,000 856,000 28,000 26,000 e 7,800 17,000 14,000 7,800 47,000 1,005,800 950,800 expenses Net income $ 16,200 $ 127,200 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: Accounts payable Interest payable Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 200,000 $184,000 74,000 124,000 103,000 $142,000 58,000 79,000 133,000 13,800 11,800 5,760 103,000 103,000 0 298,000 208,000 238,000 298,000 268,000 208,000 (94,000) (66,000) (40,000) $1,016,800 $890,800 $744,760 $ 203,400 8,400 $ 64,000 5,600 $108, 160 2,800 11,800 14,000 13,800 380,000 283,000 223,000 298,000 298,000 298,000 115,200 226,200 99,000 $1,016,800 $890,800 $744,760 Problem 12-6A Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover times times ratio Inventory turnover ratio times times Current ratio to 1 to 1 Debt to equity ratio % % 28 N JAM w 1 28 AME Problem 12-6A Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio Return on assets Profit margin Asset turnover % % % times % % times