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Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS...

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 $3,555,000 $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
   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.)

2018 2019
Receivables turnover ratio times times
Inventory turnover ratio times times
Current ratio to 1 to 1
Debt to equity ratio % %
2018 2019
Gross profit ratio % %
Return on assets % %
Profit margin % %
Asset turnover    times    times

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