Required information [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 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2025 2024 $3,530,000 $3,056,000 2,484,000 1,954,000 1,046,000 1,102,000 959,000 862,000 34,000 29,000 0 8,400 20,000 17,000 8,400 50,000 1,021,400 966,400 24,600 135,600 VIRTUAL GAMING SYSTEMS Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Balance Sheets December 31 2025 2024 2023 $207,000 $190,000 $148,000 81,000 85,000 64,000 131,000 109,000 139,000 14,400 12,400 6,480 109,000 109,000 0 Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 304,000 214,000 244,000 304,000 274,000 214,000 (109,000) (75,000) (46,000) $1,041,400 $918,400 $769,480 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $154,200 10,200 12,400 17,000 $70,000 6,800 $122,680 3,400 14,400 440,000 289,000 229,000 304,000 304,000 304,000 120,600 231,600 96,000 $1,041,400 $918,400 $769,480 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times