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Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 |
| 2019 | 2018 |
Net sales | $3,500,000 | $3,026,000 |
Cost of goods sold | 2,478,000 | 1,948,000 |
| | |
Gross profit | 1,022,000 | 1,078,000 |
Expenses: | | |
Operating expenses | 953,000 | 856,000 |
Depreciation expense | 28,000 | 26,000 |
Loss on sale of land | 0 | 7,800 |
Interest expense | 17,000 | 14,000 |
Income tax expense | 7,800 | 47,000 |
| | |
Total expenses | 1,005,800 | 950,800 |
| | |
Net income | $ 16,200 | $ 127,200 |
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VIRTUAL GAMING SYSTEMS Balance Sheets December 31 |
| 2019 | 2018 | 2017 |
Assets | | | |
Current assets: | | | |
Cash | $ 200,000 | $184,000 | $142,000 |
Accounts receivable | 74,000 | 79,000 | 58,000 |
Inventory | 124,000 | 103,000 | 133,000 |
Prepaid rent | 13,800 | 11,800 | 5,760 |
Long-term assets: | | | |
Investment in bonds | 103,000 | 103,000 | 0 |
Land | 298,000 | 208,000 | 238,000 |
Equipment | 298,000 | 268,000 | 208,000 |
Less: Accumulated depreciation | (94,000) | (66,000) | (40,000) |
| | | |
Total assets | $1,016,800 | $890,800 | $744,760 |
| | | |
Liabilities and Stockholders' Equity | | | |
Current liabilities: | | | |
Accounts payable | $ 203,400 | $ 64,000 | $108,160 |
Interest payable | 8,400 | 5,600 | 2,800 |
Income tax payable | 11,800 | 14,000 | 13,800 |
Long-term liabilities: | | | |
Notes payable | 380,000 | 283,000 | 223,000 |
Stockholders' equity: | | | |
Common stock | 298,000 | 298,000 | 298,000 |
Retained earnings | 115,200 | 226,200 | 99,000 |
| | | |
Total liabilities and stockholders equity | $1,016,800 | $890,800 | $744,760 |
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The question is:
1-Inventory turnover ratio for 2018,
2-Current ratio for 2019,
3-Profit margin for 2018,
(round to one decimal places)
Answer & Explanation
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