VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 Net sales $3,525,000 2021 $3,051,000 Cost of goods sold Gross profit Expenses: 2,483,000 1,953,000 1,042,000 1,098,000 Operating expenses 958,000 861,000 Depreciation expense 33,000 28,500 Loss on sale of land 8,300 Interest expense 19,500 16,500 Income tax expense 8,300 49,500 Total expenses Net income 1,018,800 963,800 $ 23,200 $ 134,200 Assets Current assets: VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 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 $ 205,500 $189,000 $147,000 79,500 84,000 63,000 129,500 108,000 138,000 14,300 12,300 6,360 108,000 108,000 303,000 303,000 273,000 213,000 243,000 213,000 (106,500) (73,500) (45,000) $1,036,300 $913,800 $765,360 $ 161,400 $ 69,000 $120,260 9,900 12,300 6,600 3,300 16,500 14,300 430,000 288,000 228,000 Retained earnings 303,000 303,000 303,000 119,700 230,700 96,500 Total liabilities and stockholders' equity $1,036,300 $913,800 $765,360 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Gross profit ratio 2021 % 2022 % Return on assets % % Profit margin % % Asset turnover times times