Answered step by step
Verified Expert Solution
Question
1 Approved Answer
VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment
VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation $192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6,720 111,000 216,000 276,000 (75,000) 246,000 216,000 (48,000) Total assets $930,600 $777,720 $ 72,000 7,200 18,000 $121,520 3,600 14,600 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 291,000 231,000 306,000 236,400 306,000 101,000 Total liabilities and stockholders' equity $930,600 $777,720 Earnings per share for the year ended December 31, 2018, are $1.30. The closing stock price on December 31, 2018, is $27.90. Required: Calculate the following profitability ratios for 2018. (Round your answers to 1 decimal place.) The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $3,066,000 1,956,000 1,110,000 Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $864,000 27,000 8,600 18,000 54,000 Total expenses 971,600 Net income $ 138,400 Required: Calculate the following profitability ratios for 2018. (Round your answers to 1 decimal place.) 2. Profitability Ratios 1. Gross profit ratio Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio times
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started