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Required information [The following information applies to the questions displayed below.] provided below Income statements and balance sheets data for Virtual Gaming Systems are VIRTUAL
Required information [The following information applies to the questions displayed below.] provided below Income statements and balance sheets data for Virtual Gaming Systems are VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 $3,475,000 2,473,000 1,002,000 $3,001,000 1,943,000 1,058,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense 948,000 23,000 851,000 23,500 7,300 Loss on sale of land 0 Interest expense 14,500 7,300 992,800 11,500 Income tax expense 44,500 Total expenses 937,800 S 9,200 $ 120,200 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 Assets Current assets: 197,500 71,500 121,500 13,300 Cash $179,000 74,000 98,000 11,300 $137,000 53,000 128,000 5,160 Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds 98,000 293,000 293,000 98,000 203,000 263,000 (58,500) Land 233,000 203,000 Equipment Less: Accumulated depreciation (81,500) (35,000) $1,006,300 $867,800 $724,160 Total assets Liabilities and Stockholders' Equity Current liabilities: $ 59,000 4,600 11,500 $ 96,060 2,300 13,300 Accounts payable Interest payable Income tax payable 254,400 6,900 11,300 Long-term liabilities: Notes payable Stockholders' equity: 330,000 278,000 218,000 293,000 221,700 293,000 101,500 293,000 110,700 Common stock Retained earnings $1,006,300 $867,800 $724,160 Total liabilities and stockholders' equity 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
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