Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2825 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: 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 Problem 12-6A (Algo) Part 1 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 $3,555,000 2,489,000 1,066,000 times times % 964,000 39,000 22,500 8,900 1,034,400 31,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $3,081,000 1,959,000 1,122,000 2025 times times 867,000 31,500 8,900 19,500 52,500 979,480 142,600 2825 $214,500 88,500 138,500 14,900 114,000 309,000 309,000 (121,500) $1,066,900 $118,200 11,700 12,980 490,000 309,000 125,100 $1,066,990 2024 $195,000 90,000 114,000 12,980 114,000 219,000 279,000 (82,500) $941,400 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) $75,000 7,880 19,500 294,000 309,000 236,100 $941,400 2023 $153,000 69,000 144,000 7,088 249,000 219,000 (51,000) $790,880 $134,780 3,900 14,900 234,000 309,000 93,500 $790,080
Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 2825 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: 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 Problem 12-6A (Algo) Part 1 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 $3,555,000 2,489,000 1,066,000 times times % 964,000 39,000 22,500 8,900 1,034,400 31,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 $3,081,000 1,959,000 1,122,000 2025 times times 867,000 31,500 8,900 19,500 52,500 979,480 142,600 2825 $214,500 88,500 138,500 14,900 114,000 309,000 309,000 (121,500) $1,066,900 $118,200 11,700 12,980 490,000 309,000 125,100 $1,066,990 2024 $195,000 90,000 114,000 12,980 114,000 219,000 279,000 (82,500) $941,400 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) $75,000 7,880 19,500 294,000 309,000 236,100 $941,400 2023 $153,000 69,000 144,000 7,088 249,000 219,000 (51,000) $790,880 $134,780 3,900 14,900 234,000 309,000 93,500 $790,080
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E: Identify each of the following items relating to sections of an income statement as Revenue from...
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Can you please see attached and help me solve for part one and part two using the income statements and balance sheets. Looking to calculate the following risk ratios for 2024 and 2025 (assuming all sales were on accounr) as well as calcuate the following profitibility ratios for 2024 and 2025
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Step 1: Accounting ratios
VIEWStep 2: Calculation showing the receivables turnover ratio and inventory turnover ratio for 2024 and 2025:
VIEWStep 3: Calculation showing the current ratio and debt to equity ratio for 2024 and 2025:
VIEWStep 4: Calculation showing the gross profit ratio and return on assets:
VIEWStep 5: Calculation showing the profit margin and asset turnover:
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