Income statements and balance sheets data for Virtual Gaming Systems are provided below.Net salesCost of goods soldGross profitExpenses:VIRTUAL GAMING SYSTEMSIncome StatementsFor the Years Ended December 31Operating expensesDepreciation expenseLoss on sale of landInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assets:CashAccounts receivableInventoryPrepaid rentLong-term assets:Investment in bondsLandEquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payable2025$3,520,0002,482,0001,038,000957,00032,000019,0008,2001,016, 20021,800VIRTUAL GAMING SYSTEMSBalance SheetsDecember 312024$3,046,0001,952,0001,094,000Stockholders' equity:Common stockRetained earningsTotal liabilities and stockholders' equity860,00028,0008,20016,00049,000961,200132,8002025$204,00078,000128,00014, 200107,000302,000302,000(104,000)$1,031, 200$168,6009,60012,200420,000302,000118,800$1,031, 2002024$188,00083,000107,00012, 200107,000212,000272,000(72,000)$909, 200$68,0006,40016,000287,000302,000229,800$909, 2002023$146,00062,000137,0006,2400242,000212,000(44,000)$761,240$117,8403,20014, 200227,000302,00097,000$761,240 Required:1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimalplace.)Receivables turnover ratioInventory turnover ratioCurrent ratioDebt to equity ratio2024timestimes%2025timestimes%

The current ratio is used to evaluate whether the entity will be able to meet its short-term…

Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 Net income Assets Current assets: 2025 $3,520,000 2,482,000 1,038,000 957,000 32,000 0 19,000 8,200 1,016, 200 21,800 2024 $3,046,000 1,952,000 1,094,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 860,000 28,000 8,200 16,000 49,000 961,200 132,800 2025 2024 2023

Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 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 Net income Assets Current assets: 2025 $3,520,000 2,482,000 1,038,000 957,000 32,000 0 19,000 8,200 1,016, 200 21,800 2024 $3,046,000 1,952,000 1,094,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 860,000 28,000 8,200 16,000 49,000 961,200 132,800 2025 2024 2023

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 4EP

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