Net sales Cost of goods sold Gross profit Expenses: VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 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 2025 $3,465,000 2,471,000 994,000 946,000 21,000 0 13,500 7,100 87,600 6,400 VIRTUAL GAMING SYSTEMS Balance Sheets. December 31 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity
VIRTUAL GAMING SYSTEMS Incothe statements For the Years Ended December 31 \begin{tabular}{lrr} Net sales & 2025 & 2024 \\ Cost of goods sold & $3,465,000 & $2,991,000 \\ Gross profit & 2,471,000 & 1,941,000 \\ Expenses: & 994,000 & 1,050,000 \\ Operating expenses & & \\ Depreciation expense & 946,000 & 849,000 \\ Loss on sale of land & 21,000 & 22,500 \\ Interest exWense & 0 & 7,100 \\ Income tax expense & 13,500 & 10,500 \\ Total expenses & 7,100 & 43,500 \\ Net income & 987,600 & 932,600 \\ \hline \end{tabular} VIRTUAL OAMTMC SYSTEMS Balance Sheet: December 31 Prev 10 of 10 :ty Next 2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025 : (Round yo place.)
