VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,061,000 Cost of goods 1,955,000 sold Gross profit 1,106,000 Expenses: Operating $863,000 expenses Depreciation 27,000 expense Loss on sale 8,500 of land Interest 17,500 expense Income tax 53,000 expense Total 969,000 expenses Net income $ 137,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $191,000 86,000 110,000 12,500 $149,000 65,000 140,000 6,600 110,000 215,000 275,000 (74,000) $925,500 245,000 215,000 (47,000) $773,600 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 $ 71,000 7,000 17,500 120,100 3,500 14,500 290,000 230,000 305,000 235,000 $925,500 305,000 100,500 $773,600 Earnings per share for the year ended December 31, 2021, are $1.20. The closing stock price on December 31, 2021, is $27.80. Required: Calculate the following profitability ratios for 2021. (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 Price-earnings ratio times