Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income statements For the years ended December 31 2022 2021 Net sales $3,560,000 $3,086,000 Cont of goods sold 2,490.000 1,960,000 Gross profit 1,070,000 1,126,000 Expenses Operating expenses 965,000 868,000 Depreciation expense 40,000 32,000 Loss on sale of land 0 9,000 Interest expense 23,000 20,000 Income tax expense 9,000 53,000 Total expenses 1,037,000 982,000 Net income $ 33,000 $ 144,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 216,000 90,000 140,000 15,000 $196,000 91,000 115,000 13,000 $154,000 70,000 145,090 7,250 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bondo Land Equipment Lesni Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity! Common stock 115,000 310,000 310,000 (124,000) $1,072,000 115,000 0 220,000 250,000 280,000 220,000 (84,000) (52,000) $946,000 $794,200 $137,200 4,000 15,000 $ 111,000 $ 76,000 12,000 8,000 13,000 20,000 500,000 295,000 310.000 310.000 235,000 310.000 Required information $ 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) $1,072,000 115,000 220,000 280,000 (84,000) $946,000 0 250,000 220,000 (52,000) $ 794,200 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: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity! Common stock Retained earnings Total liabilities and stockholders' equity $ 111,000 12,000 13,000 $ 76,000 8,000 20,000 $ 137,200 4,000 15,000 500,000 295,000 235,000 310,000 126,000 $1,072,000 310,000 237,000 $946,000 310,000 93,000 $ 794,200 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 % % % Gross profit ratio Return on assets Profit margin Asset turnover % times % times