[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 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 $3,525,000 2,483,000 2024 $3,051,000 1,953,000 1,042,000 1,098,000 958,000 861,000 33,000 28,500 0 8,300 19,500 16,500 8,300 49,500 1,018,800 963,800 23,200 134,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Equipment $205,500 $189,000 $147,000 79,500 84,000 63,000 129,500 108,000 138,000 14,300 12,300 6,360 108,000 108,000 0 303,000 213,000 243,000 303,000 273,000 213,000 Less: Accumulated depreciation (106,500) (73,500) (45,000) Total assets $1,036,300 $913,800 $765,360 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $161,400 $69,000 $120,260 Interest payable 9,900 6,600 3,300 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 12,300 16,500 14,300 430,000 288,000 228,000 Common stock Retained earnings Total liabilities and stockholders' equity 303,000 303,000 303,000 119,700 230,700 96,500 $1,036,300 $913,800 $765,360 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio 2024 % 2025 % Return on assets % % Profit margin % % Asset turnover times times