[The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2025 $3,475,000 2,473,000 1,002,000 2024 $3,001,000 1,943,000 1,058,000 948,000 851,000 23,000 14,500 7,300 992,800 9,200 44,500 937,800 120,200 23,500 7,300 11,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Long-term assets: Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Investment in bonds Equipment $197,500 $179,000 $137,000 71,500 74,000 53,000 121,500 98,000 128,000 13,300 11,300 5,160 98,000 98,000 e 293,000 203,000 233,000 293,000 263,000 203,000 Less: Accumulated depreciation (81,500) (58,500) (35,000) Total assets $1,006,300 $867,800 $724,160 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $254,400 $59,000 $96,060 Interest payable 6,900 4,600 2,300 Income tax payable. 11.300 11.500 13.300 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Equipment 2025 2024 2023 $197,500 71,500 $179,000 $137,000 74,000 121,500 98,000 13,300 11,300 53,000 128,000 5,160 98,000 98,000 8 293,000 203,000 233,000 293,000 263,000 203,000 Less: Accumulated depreciation (81,500) (58,500) (35,000) Total assets $1,006,300 $867,800 $724,160 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $254,400 $59,000 $96,060 Interest payable 6,900 4,600 2,300 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 11,300 11,500 13,300 330,000 278,000 218,000 293,000 293,000 293,000 Retained earnings Total liabilities and stockholders' equity 110,700 221,700 101,500 $1,006,300 $867,800 $724,160 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times