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 Income tax expense Interest expense Total expenses Net income Assets Current assets: Cash 2025 2024 $3,505,000 $3,031,000 2,479,000 1,949,000 1,026,000 1,082,000 954,000 857,000 29,000 26,500 0 7,900 17,500 14,500 7,900 47,500 1,008,400 953,400 17,600 128,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 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: Common stock Retained earnings Total liabilities and stockholders' equity $200,500 74,500 $185,000 $143,000 80,000 59,000 124,500 104,000 134,000 13,900 11,900 5,880 0 104,000 104,000 299,000 209,000 239,000 299,000 269,000 209,000 (96,500) (67,500) (41,000) $1,018,900 $895,400 $748,880 $193,200 $65,000 $110,580 8,700 5,800 11,900 14,500 2,900 13,900 390,000 284,000 224,000 299,000 299,000 299,000 116,100 227,100 98,500 $1,018,900 $895,400 $748,880 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2024 2025 % % % % % % times times