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The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024
The following income statement and balance sheets for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS | ||
Income Statement | ||
For the Year Ended December 31, 2024 | ||
Net sales | $2,991,000 | |
---|---|---|
Cost of goods sold | 1,941,000 | |
Gross profit | 1,050,000 | |
Expenses: | ||
Operating expenses | $849,000 | |
Depreciation expense | 22,500 | |
Loss on sale of land | 7,100 | |
Interest expense | 10,500 | |
Income tax expense | 39,000 | |
Total expenses | 928,100 | |
Net income | $121,900 |
VIRTUAL GAMING SYSTEMS | ||
Balance Sheets | ||
December 31 | ||
2024 | 2023 | |
---|---|---|
Assets | ||
Current assets: | ||
Cash | $177,000 | $135,000 |
Accounts receivable | 72,000 | 51,000 |
Inventory | 96,000 | 126,000 |
Prepaid rent | 11,100 | 4,920 |
Long-term assets: | ||
Investment in bonds | 96,000 | 0 |
Land | 201,000 | 231,000 |
Equipment | 261,000 | 201,000 |
Less: Accumulated depreciation | (55,500) | (33,000) |
Total assets | 858,600 | $715,920 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $57,000 | $72,000 |
Interest payable | 4,200 | 2,100 |
Income tax payable | 10,500 | 13,100 |
Long-term liabilities: | ||
Notes payable | 276,000 | 216,000 |
Stockholders' equity: | ||
Common stock | 291,000 | 291,000 |
Retained earnings | 219,900 | 121,720 |
Total liabilities and stockholders equity | $858,600 | $715,920 |
Required: Assuming that all sales were on account, calculate the following risk ratios for 2024. (Use 365 days a year. Round your final answers to 1 decimal place.)
Receivable turnover ratio | times | |
average collection period | days | |
inventory turnover ratio | times | |
average days in inventory | days | |
current ratio | ||
acid-test ratio | ||
debt to equity ratio | % | |
times interest earned ratio | times |
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