VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $3,086,000 1,960,000 Gross profit 1,126,000 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $868,000 32,000 9,000 20,000 58,000 Total expenses 987,000 Net income $139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 rent Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation 115,000 220,000 280,000 (84,000) 250,000 220,000 (52,000) Total assets S946.000 $794,200 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable $76,000 8,000 20,000 S91,000 4,000 15,000 Long-term liabilities: Notes payable 295,000 235,000 Stockholders' equity: Common stock Retained earnings 310,000 237,000 310,000 139,200 Total liabilities and stockholders' equity S946,000 $794,200 Earnings per share for the year ended December 31, 2018, are $1.40. The closing stock price on December 31, 2018, is $28.30 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. times ratio