Required information [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 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 $ 3,560,000 2,490,000 1,070,000 2024 $ 3,086,000 1,960,000 1,126,000 965,000 868,000 40,000 32,000 0 9,000 23,000 9,000 1,037,000 20,000 58,000 987,000 $ 33,000 $ 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Tiabilities and Stockholders' Ranity $216,000 90,000 $ 154,000 70,000 145,000 7,200 $196,000 91,000 140,000 115,000 15,000 13,000 115,000 115,000 0 310,000 220,000 250,000 310,000 280,000 (84,000) (124,000) $ 1,072,000 $ 946,000 220,000 (52,000) $ 794,200 Navt Chapter 12 Saved 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 $ 154,000 70,000 145,000 7,200 $ 216,000 $196,000 90,000 91,000 140,000 115,000 15,000 13,000 115,000 115,000 0 310,000 220,000 250,000 280,000 220,000 (52,000) 310,000 (124,000) $ 1,072,000 $ 161,000 12,000 (84,000) $ 946,000 $ 794,200 $ 91,000 4,000 $ 76,000 8,000 13,000 20,000 15,000 450,000 295,000 235,000 Stockholders' equity: Common stock 310,000 310,000 310,000 Retained earnings 126,000 237,000 139,200 Total liabilities and stockholders' equity $ 1,072,000 $ 946,000 $ 794,200 2. Calculate the following return to shareholders and profitability ratios for 2025 and 2024: Note: Round your answers to 1 decimal place. 2025 2024 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times Help S