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Saved Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,460,000 2,470,000 990,000 2024 $2,986,000 1,940,000 1,046,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 945,000 20,000 848,000 22,000 7,000 10,000 43,000 930,000 13,000 7,000 985,000 Net income 5,000 116,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) $854,000 230,000 200,000 (32,000) $711,800 Total assets Liabilities and Stockholders' Equity Current liabilities: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 300,000 275,000 215,000 290,000 108,000 290,000 219,000 290,000 103,000 $711,800 Total liabilities and stockholders' equity $1,000,000 $854,000

Saved Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 $3,460,000 2,470,000 990,000 2024 $2,986,000 1,940,000 1,046,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 945,000 20,000 848,000 22,000 7,000 10,000 43,000 930,000 13,000 7,000 985,000 Net income 5,000 116,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) $854,000 230,000 200,000 (32,000) $711,800 Total assets Liabilities and Stockholders' Equity Current liabilities: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 300,000 275,000 215,000 290,000 108,000 290,000 219,000 290,000 103,000 $711,800 Total liabilities and stockholders' equity $1,000,000 $854,000

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 5MAD: Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent...
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Saved Не Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 2024 $3,460,000 2,470,000 990,000 $2,986,000 1,940,000 1,046,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 945,000 20,000 13,000 7,000 985,000 5,000 848,000 22,000 7,000 10,000 43,000 930,000 116,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 Inventory Prepaid rent Long-term assets: Investment in bonds 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) 230,000 200,000 (32,000) $711,800 Land Equipment Less: Accumulated depreciation Total assets $854,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 300,000 275,000 215,000 Common stock 290,000 108,000 $1,000,000 290,000 219,000 $854,000 290,000 103,000 $711,800 Retained earnings Total liabilities and stockholders' equity
Transcribed Image Text:Saved Не Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2025 2024 $3,460,000 2,470,000 990,000 $2,986,000 1,940,000 1,046,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses 945,000 20,000 13,000 7,000 985,000 5,000 848,000 22,000 7,000 10,000 43,000 930,000 116,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 Assets Current assets: Cash Accounts receivable $196,000 70,000 120,000 13,000 $176,000 71,000 95,000 11,000 $134,000 50,000 125,000 4,800 Inventory Prepaid rent Long-term assets: Investment in bonds 95,000 290,000 290,000 (74,000) $1,000,000 95,000 200,000 260,000 (54,000) 230,000 200,000 (32,000) $711,800 Land Equipment Less: Accumulated depreciation Total assets $854,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: $285,000 6,000 11,000 $56,000 4,000 10,000 $88,800 2,000 13,000 300,000 275,000 215,000 Common stock 290,000 108,000 $1,000,000 290,000 219,000 $854,000 290,000 103,000 $711,800 Retained earnings Total liabilities and stockholders' equity
2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin Asset turnover times times
Transcribed Image Text:2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 2024 2025 Gross profit ratio % % Return on assets % % Profit margin Asset turnover times times
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