VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2e22 2021 Net sales $3,495,000 $3,021, eee Cost of goods sold 2,477 , 1,947 , Gross profit 1,018,000 1,074,000 Expenses: Operating expenses 952,000 855, eee Depreciation expense 27,000 25,500 Loss on sale of land 7,700 Interest expense 16,500 13,500 Income tax expense 7,700 46,500 Total expenses 1,003, 200 948,280 Net income $ 14,800 $ 125,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 199,500 73,500 123,50e 13,700 $183 , $141, 78, eee 57, eee 102,000 132,000 11,700 5,640 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 102, eee 102,000 @ 297,000 207,000 237 , 297,000 267, 207, eee (91,500) (64,500) (39,000) $1,014,700 $886,200 $740, 640 $ 213,600 8,100 11,700 63,000 $105,740 5,400 2,700 13,500 13,700 370,000 282,000 222,000 297,000 297,000 297,000 114,300 225, 300 $1,014,700 $886,200 $740,640 99,5001 2. Calculate the following profitability ratios for 2021 and 2022 (Round your answers to 1 decimal place.) 2022 2021 % % % times Gross profit ratio Return on assets Profit margin Asset turnover % % % times