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 belo VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,540,000 $3,066,000 Cost of goods sold 2,486,000 1,956,000 Gross profit 1,054,000 1,110,000 Expenses: Operating 961,000 expenses 864,000 Depreciation 36,000 expense 30,000 Loss on sale of land 8,600 Interest expense 21,000 18,000 Income tax expense 8,600 51,000 Total expenses 1,026,600 971,600 Net income $ 27,400 138,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 Assets Current assets: $ 210,000 Cash $192,000 $150,000 Accounts receivable 84,000 87,000 66,000 Inventory 134,000 111,000 141,000 Prepaid rent 14,600 12,600 6,720 Long-term assets: Investment in bonds 111,000 111,000 Land 306,000 216,000 246,000 Equipment 306,000 276,000 216,000 Less: Accumulated depreciation (114,000) (78,000) (48,000 Total assets $1,051,600 $927,600 $777, 720 Liabilities and StockholdersEquity Current liabilities: Accounts payable $ 139,800 $ 72,000 $127,520 Interest payable 10,800 7,200 3,600 Income tax payable 12,600 18,000 14,600 Long-term liabilities: Notes payable 460,090 291,000 231,000 Stockholders' equity : Common stock 306,000 306,000 306,000 Retained earnings 122,400 233, 400 95,000 Total liabilities and stockholders' equity $1,051, 600 $927,600 $777,720 Problem 12-6A Part 2 Problem 12-6A Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover