VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,465,000 $2,991,000 Cost of goods sold 2,471,000 1,941,000 Gross profit 994,000 1,050,000 Expenses: Operating expenses 946,000 849,000 Depreciation expense 21,000 22,500 Loss on sale of land 0 7,100 Interest expense 13,500 10,500 Income tax expense 7,100 43,500 Total expenses 987,600 932,600 Net income $ 6,400 $ 117,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 196,500 70,500 120,500 13, 100 $177,000 72,000 96,000 11,100 $135,000 51,000 126,000 4,920 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 96,000 291,000 291,000 (76,500) $1,002,100 96,000 201,000 261,000 (55,500) $858,600 231,000 201,000 (33,000) $715,920 $ 274,800 6,300 11, 100 $ 57,000 4,200 10,500 $ 91,220 2,100 13,100 310,000 276,000 216,000 291,000 108,900 $1,002,100 291,000 219,900 $858,600 291,000 102,500 $715,920 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio % % Return on assets % % Profit margin % % Asset turnover times times