[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 $3,550,000 2,488,000 2024 $3,076,000 1,958,000 1,062,000 1,118,000 963,000 866,000 38,000 31,000 0 8,800 22,000 19,000 8,800 52,000 1,031,800 976,800 30,200 141,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment $213,000 87,000 $194,000 89,000 137,000 113,000 14,800 12,800 $152,000 68,000 143,000 6,960 113,000 113,000 0 308,000 218,000 248,000 308,000 278,000 218,000 Less: Accumulated depreciation (119,000) (81,000) (50,000) Total assets $1,061,800 $936,800 $785,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $125,400 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 11,400 12,800 $74,000 7,600 19,000 $132,360 3,800 14,800 480,000 293,000 233,000 308,000 308,000 308,000 Retained earnings Total liabilities and stockholders' equity 124,200 $1,061,800 235,200 $936,800 94,000 $785,960 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Gross profit ratio Return on assets Profit margin Asset turnover 2024 2025 % % % % % % times times