[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 year ended December 31 2019 Net sales $3,560,000 Cost of goods sold 2,490,000 2018 $3,086,000 1,960,000 1,070,000 1,126,000 Gross profit Expenses Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense 965.000 40.000 0 23,000 9,000 868,000 32,000 9,000 20.000 58.000 Total expenses 1,037,000 987.000 Net Income $ 33.000 $ 139.000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2019 2018 2017 Assets Current assets 216000 SAAB VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2019 2018 2017 Assets Current assets Cash Accounts recevable Inventory Prepaid rent Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation $ 216,000 90,000 140.000 15,000 $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 115,000 310,000 310,000 (124,000) 115,000 220,000 280,000 (84,000) 0 250.000 220,000 (52,000) $1,072.000 Total assets $946,000 $794,200 $ 161,000 12,000 13,000 $ 76,000 8,000 20.000 $91,000 4.000 15.000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings 450.000 295.000 235,000 310,000 126.000 310.000 237.000 310,000 139 200 $1,072,000 $946.000 $794 200 Total liabilities and stockholders' equity Problem 12-6A Part 1 Required: 1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. 2018 2019 38.3 times 39.3 times 15.1 times 19.5 times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio to 1 2.5 to 1 4.0 0.7 XIX . % 1.5 1 x % Problem 12-6A Part 2 2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. 2018 2019 36.5 > % 30.1 % 0.2% % 0.0 X % Gross profit ratio Return on assets Profit margin Asset turnover 4.5 SIX % 0.9 % 3.6 times S uh times i like & thumps Up (The following information applies to the questions displayed below. Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 Revenues: Service revenue (clinic, racing, TEAM) $531,000 Sales revenue (MU watches) 106,000 $637.000 Total revenues Expenses: Cost of goods sold (MU Watches) Operating expenses Depreciation expense Interest expense Income tax expense 64.000 303.676 44.000 29.124 53.400 Total expenses 494,200 Net Income $142.800 GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase (1) or GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 2020 Increase (1) or Decrease (D) 2019 $ $ Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Less: Accumulated depreciation 315,928 36,000 16,100 12,100 132.000 29,000 13.400 10.400 183,928 (1) 7,000 (0) 2,700 (0) 1,700 (1) 300,000 1,100,000 59,000 (67.750) 0 0 59,000 (23,750) 300,000 (0) 1,100,000 (1) 44,000 (0) Total assets $ 1,771,378 $ 220,050 2.700 (0) $11.100 690 53.400 $8.400 690 35.000 18.400 (0) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Pald-in capital Retained earnings Treasury stock 429,428 27.000 402.428 (0) 125,000 1.106.000 147.760 (102,000) 25.000 0 123.960 100.000 (1) 1.106.000(0) 23.800 (1) (102.000) (0) Total abilities and stockholders' equity $ 1,771,378 $ 220.050 As you can tell from the financial statements, 2020 was an especially busy vear Tony and Szia Market As you can tell from the financial statements, 2020 was an especially busy year. Tony and Suzie were able to use the $12 million received from the issuance of 100,000 shares of stock to hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson Assume all sales and services are on credit References Section Break Great Adventures Problem 12.1 value 2.00 points Required information You did not receive full credit for this question in a previous attempt Great Adventures Problem 12-1 Part 1 Required: 1. Calculate the following risk ratios for 2020. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Required: 1. Calculate the following risk ratios for 2020. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Answer is complete but not entirely correct. a. 19.60 times b 18.62 days Receivables turnover ratio Average collection period Inventory turnover ratio Average days in inventory Current ratio c. 4.34 times d. 84.10 days CD 5.83 to 1 f. Acid-test ratio 5.58 X to 1 g 38.74 % Debt to equity ratio Times interest earned ratio h. 7.74 times i like & thumps Up