Required information Problem 12-8A Use ratlos to analyze risk and profitablllty (L012-3, 12.4) [The following information applies to the questions displayed below.] Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2e22 2e21 Net Sales $3,560,eee $3,086,000 Cost of goods sold 2,498, eee 1,968,000 Gross profit 1,078,888 1,126,600 Expenses : Operating expenses 965.BR 868, eee Depreciation expense 40, een 32,eee Loss on sale of land 9. eee Interest expense 23,600 Income tax expense 9,00 58,eee Total expenses 1,237,200 987,600 Net income $ 33,00 $ 139, eet 28,888 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2821 2020 $ 216, eee 90, eee 148,888 15,888 $196,eee $154,088 91, eee 70,000 115,000 145,000 13,00 7,288 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: Connon stock Retained earnings Total liabilities and stockholders' equity 115,00 318, een 310, eee (124,00) $1,072,000 115, een 3 220,000 250,000 288, eee 220,000 (84, eee) (52.600) $946,800 $794,288 $ 161, eee 12.ee 13, een $ 76,eee 8.888 20,000 $ 91,00 4.800 15,000 450, eee 295, een 235,000 310,000 318,eee 318,888 126,eee 237,000 139,288 $1,272,eee $946,eee $794,200 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 times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio times to 1 % times times to 1 % Required Information Problem 12-8A Use ratlos to analyze risk and profitability (L012-3, 12-4) [The following information applies to the questions displayed below.] Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net Sales $3,560,000 $3,086,000 Cost of goods sold 2,498,eee 1,960, eee Gross profit 1,078,eee 1,126,298 Expenses: Operating expenses 965, eee 868, ees Depreciation expense 48, eee 32,eee Loss on sale of land 0 9,000 Interest expense 23,000 20,000 Income tax expense 9,800 58, eee Total expenses 1,237,298 987,00 Net income $ 33,00 $ 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2820 $ 216,800 $ 196, eee $154,90 90, eee 91,00 70,000 149, eee 115, een 145, eee 15, eee 13, eee 7,200 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets Investnent 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: Connon stock Retained earnings Total liabilities and stockholders' equity 115, eee 115,00 @ 310, eee 220,000 250,000 319, eee 288,eee 220,eee (124.eee) (84,280) (52,688) $1,072,eee $946,800 $794,280 $ 161,200 $ 76,000 $ 76,098 $ 91,888 12,eee B, eee 4.eee 13, een 20, een 15,808 450,000 295, eee , 235,000 319, eee 310,000 310,000 126,eee 237, eee 139,208 $1,072,000 $946, eee $794,200 = Problem 12-6A Part 2 2 Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2022 2021 % % Gross profit ratio Return on assets Profit margin Asset turnover % % times times
