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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, 2021
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $2,986,000 Cost of goods sold 1,940,000 Gross profit 1,046,000 Expenses: Operating expenses $848,000 Depreciation expense 27,000 Loss on sale of land 7,000 Interest expense 10,000 Income tax expense 38,000 Total expenses 930,000 Net income $ 116,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 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: 95,000 200,000 260,000 (59,000) $849,000 230,000 200,000 (32,000) $711,800 Accounts payable Interest payable Income tax payable $ 56,000 4,000 10,000 98,800 2,000 13,000 $ 849,000 $711,800 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 $ 56,000 4,000 10,000 98,800 2,000 13,000 275,000 215,000 290,000 214,000 $849,000 290,000 93,000 $711,800 Earnings per share for the year ended December 31, 2021, are $1.20. The closing stock price on December 31, 2021, is $26.30. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) 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
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