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VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $2,996,000 1,942,000 1,054,000 Gross profit Expenses $850,000
VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $2,996,000 1,942,000 1,054,000 Gross profit Expenses $850,000 27,000 7,200 11,000 40,000 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense 935,200 Total expenses Net income S 118,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent $178,000 73,000 97,000 11,200 $136,000 52,000 127,000 5,040 Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation 97,000 202,000 262,000 (61,000) 232,000 202,000 (34,000) Total assets $859,200 $720,040 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable $58,000 4,400 11,000 S 101,640 2,200 13,200 Long-term liabilities 277,000 Notes payable 217,000 Stockholders' equity 292,000 94,000 Common stock Retained earnings 292,000 216,800 $720,040 Total liabilities and stockholders' equity $859,200 Earnings per share for the year ended December 31, 2018, are $1.30. The closing stock price on December 31, 2018, is $26.50 Required Calculate the following profitability ratios for 2018. (Round your answers to 1 decimal place.) Profitability Ratios 1. Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio times
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