The following income statement and balance sheets for Virtual Gaming Systems are provided.VIRTUAL GAMING SYSTEMSIncome StatementFor the Year Ended December 31, 2024Net salesCost of goods soldGross profitExpenses:Operating expensesDepreciation expenseLoss on sale of land.Interest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assets:CashAccounts receivableInventoryPrepaid rentLong-term assets:Investment in bondsLandEquipmentLess: Accumulated depreciationTotal assetsLiabilities and stockholders' EquityCurrent liabilities:Accounts payableInterest payable$860,00027,0008,20016,00050,000VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31Income tax payableLong-term liabilities:Notes payablestockholders' equity:Common stockRetained earningsTotal liabilities and stockholders' equityProfitability Ratios1.Gross profit ratio2. Return on assets3. Profit margin4. Asset turnover5. Return on equity6.Price-earnings ratio$3,046,0001,952,0001,094, 000%%%times961,200$132,8002024$188,00083,000107,00012, 200107,000212,000272,000(71,000)910, 200$68,0006,40016,000287,000302,000230, 800$910, 2002023$146,00062,000137,0006,2400242,000212,000(44,000)$761,240Earnings per share for the year ended December 31, 2024, are $1.20. The closing stock price on December 31, 2024, Is $27.50.Required:Calculate the following profitability ratios for 2024. (Round your answers to 1 decimal place.)$115,8403,20014,200227,000302,00099,000$761,240

Profitability ratios are helpful in knowing the performance of the business. They are calculated in…

Calculate the following profitability ratios for 2024. (Round y Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio % % % times %

Calculate the following profitability ratios for 2024. (Round y Profitability Ratios 1.Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6.Price-earnings ratio % % % times %

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMSIncome StatementFor the year ended December 31, 2021 Net sales $2,530,000 Gain on sale of land 3,500 Total revenues 2,533,500 Expenses: Cost of goods sold $1,615,000 Operating expenses 608,000 Depreciation expense 26,000 Interest expense 27,000 Income tax expense 73,000 Total expenses 2,349,000 Net income $184,500 VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31 2021 2020 Assets Current assets: Cash $265,120 $206,940 Accounts receivable 71,700 87,000 Inventory 149,500 138,000 Prepaid rent 4,180 6,360 Long-term assets: Investments 188,000 100,000 Land 211,500 263,000 Equipment 236,000 213,000 Accumulated depreciation (132,500) (106,500) Total assets $993,500 $907,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable…
Income statement and balance sheet data for Virtual Gaming Systems are provided below.Required: 1. Calculate the following risk ratios for 2021 and 2022: a. Receivables turnover ratio. c. Current ratio. b. Inventory turnover ratio. d. Debt to equity ratio. 2. Calculate the following profitability ratios for 2021 and 2022: a. Gross profit ratio. c. Profit margin. b. Return on assets. d. Asset turnover. 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2021 to 2022.
Which of the following costs are reported on a company’s income statement and balance sheet? Select one: a. Cost of goods sold; Accumulated depreciation b. Gain on sale of land; Cost of goods sold c. Goodwill; Accounts payable d. Accumulated deprecation; Land
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Income statement and balance sheet data for The Athletic Attic are provided below.Required: 1. Calculate the following risk ratios for 2021 and 2022: a. Receivables turnover ratio. c. Current ratio. b. Inventory turnover ratio. d. Debt to equity ratio. 2. Calculate the following profitability ratios for 2021 and 2022: a. Gross profit ratio. c. Profit margin. b. Return on assets. d. Asset turnover. 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2021 to 2022.
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Use this information to Prepare a multiple-step income statement with earnings per sharedisclosure Denver Co. 12/31/2022 Debits CreditsPartial Trial Balance DataSales revenue 700,000Interest revenue 60,000Salary payable 15,000Gain on sale of land 110,000Patent 15,000Supply inventory 25,000Cost of goods sold 500,000Salary expenses 150,000Common stock 250,000Retained earnings 150,000Cash 250,000Office expense 100,000Denver's business segment, Division A, was sold at a pretax loss of 25,000 on July 1, 2022. Ithad earned a $13,000 pretax operating income from January 1, 2022 to the disposal date. Denverhad 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet beenaccrued. The effective tax rate is 30%. dont give me handwritten answers thank you
Land costing $41,155 was sold for $77,036 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? Select the correct answer. -$41,155 -$118,191 -$77,036 -$35,881
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