In: Accounting
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 |
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2019 | 2018 | |
Net sales | $3,555,000 | $3,081,000 |
Cost of goods sold | 2,489,000 | 1,959,000 |
Gross profit | 1,066,000 | 1,122,000 |
Expenses: | ||
Operating expenses | 964,000 | 867,000 |
Depreciation expense | 39,000 | 31,500 |
Loss on sale of land | 0 | 8,900 |
Interest expense | 22,500 | 19,500 |
Income tax expense | 8,900 | 52,500 |
Total expenses | 1,034,400 | 979,400 |
Net income | $ 31,600 | $ 142,600 |
VIRTUAL GAMING SYSTEMS Balance Sheets December 31 |
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2019 | 2018 | 2017 | |
Assets | |||
Current assets: | |||
Cash | $ 214,500 | $195,000 | $153,000 |
Accounts receivable | 88,500 | 90,000 | 69,000 |
Inventory | 138,500 | 114,000 | 144,000 |
Prepaid rent | 14,900 | 12,900 | 7,080 |
Long-term assets: | |||
Investment in bonds | 114,000 | 114,000 | 0 |
Land | 309,000 | 219,000 | 249,000 |
Equipment | 309,000 | 279,000 | 219,000 |
Less: Accumulated depreciation | (121,500) | (82,500) | (51,000) |
Total assets | $1,066,900 | $941,400 | $790,080 |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 118,200 | $ 75,000 | $134,780 |
Interest payable | 11,700 | 7,800 | 3,900 |
Income tax payable | 12,900 | 19,500 | 14,900 |
Long-term liabilities: | |||
Notes payable | 490,000 | 294,000 | 234,000 |
Stockholders' equity: | |||
Common stock | 309,000 | 309,000 | 309,000 |
Retained earnings | 125,100 | 236,100 | 93,500 |
Total liabilities and stockholders’ equity | $1,066,900 | $941,400 | $790,080 |
Required:
1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)
2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)
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