VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $ 3,086,000 Cost of goods sold 1,960,000 Gross profit 1,126,000 Expenses: Operating expenses $868,000 Depreciation expense 27,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,600 Total expenses 982,000 Net income $ 144,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $196,000 91,000 115,000 13,000 $154,000 70, 980 145,000 7,288 115,000 220,000 280,000 (79.000) $951,000 a 250,000 220,000 (52,080) $794,200 Assets 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 $ 76,000 8,000 20,000 $ 127,200 4,000 15,000 295,000 235,000 310,000 242,000 $951,000 310,000 103,000 $794,200 Earnings per share for the year ended December 31, 2021, are $1.40. The closing stock price on December 31, 2021, is $28.30. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) 1 2. 3 Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover Return on equity Price-earnings ratio % % % times % 4. 5. 6