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 $3,545,000 2,487,000 1,058,000 962,000 37,000 0 21,500 8,700 1,029, 200 28,800 2024 $3,071,000 1,957,000 1,114,000 865,000 30,500 8,700 18,500 51,500 974,200 139,800 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds VIRTUAL GAMING SYSTEMS Balance Sheets December 31. 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 2025 $211,500 85,500 135,500 14,700 112,000 307,000 307,000 (116,500) $1,056,700 $132,600 11,100 12,700 470,000 307,000 123,300 2024 $193,000 88,000 112,000 12,700 112,000 217,000 277,000 (79,500) $932,200 2023 $151,000 67,000 142,000 6,840 0 247,000 217,000 (49,000) $781,840 $73,000 $129,940 7,400 18,500 292,000 307,000 234,300 $1,056,700 $932,200 3,700 14,700 232,000 307,000 94,500 $781,840 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio: Debt to equity ratio 2024 times times % 2025 times times % 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 % % % times 2025 % % % times