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VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,560,000 $3,086,000 Cost of goods sold 2,490,000 1,960,000 Gross profit
VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,560,000 $3,086,000 Cost of goods sold 2,490,000 1,960,000 Gross profit 1,070,000 1,126,000 Expenses: Operating expenses 965,000 868,000 Depreciation expense 40,000 32,000 Loss on sale of land 0 9,000 Interest expense 23,000 20,000 Income tax expense 9,000 53,000 Total expenses 1,037,000 982,000 Net income $ 33,000 $ 144,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 216,000 $196,000 $154,000 90,000 91,000 70,000 140,000 115,000 145,000 15,000 13,000 7,200 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 115,000 115,000 310,000 220,000 250,000 310,000 280,000 220,000 (124,000). (84,000). (52,000) $1,072,000 $946,000 $794,200 $ 111,000 $ 76,000 $137,200 12,000 8,000 4,000 13,000 20,000 15,000 500,000 295,000 235,000 310,000 126,000 $1,072,000 310,000 310,000 237,000 93,000 $946,000 $794,200 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. 2021 2022 Gross profit ratio 0.3% 0.6 % Return on assets 0,3 % 0.2% Profit margin 0.9 X % 4.6 % Asset turnover 3.5 times 3.5 times
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