The following income statement and balance sheets for Virtual Gaming Systems are provided.

Earnings per share for the year ended December 31, 2021, are $1.30. The closing stock price on December 31, 2021, is $26.50.

Required:

Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.)

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $2,996,000 Cost of goods sold 1,942,000 Gross profit 1,054,000 Expenses: Operating expenses $850,000 Depreciation expense 27,000 Loss on sale of land 7,200 Interest expense 11,000 Income tax expense 40,000 Total expenses 935,200 Net income $ 118,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $178,000 73,000 97,000 11,200 $136,000 52,000 127,000 5,040 97,000 202,000 262,000 (61,000) $859,200 232,000 202,000 (34,000) $720,040 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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 58,000 4,400 11,000 101,640 2,200 13,200 277,000 217,000 292,000 216,800 $859,200 292,000 94,000 $720, 040 Profitability Ratios 1. Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio times