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 Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Connon stock Retained earnings Total liabilities and stockholders' equity Receivables turnover ratio Inventory turnover ratio Current natio Debt to equity ratio 2024 times times % 2025 138,500 14,900 times times 114,000 12,900 114,000 309,000 309,000 279,000 (121,500) (82,500) $1,066,900 $941,400 $118,200 11,700 12,900 490,000 309,000 125,100 $1,066,900 114,000 219,000 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 7,800 19,500 294,000 309,000 236, 100 $941,400 144,000 7,080 249,000 219,000 (51,000) $790,080 $134,780 3,900 14,900 234,000 309,000 93,500 $790,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
%
2025
times
times
138,500
24,900
%
114,000
309,000
309,000
(121,500)
$1,066,900
$118,200
11,700
12,900
114,000
12,980
490,000
309,000
125,100
114,000
219,000
144,000
7,080
$75,000 $134,780
7,800
19,500
294,000
309,000
236,100
$1,066,900 $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.)
0
249,000
279,000
219,000
(82,500) (51,000)
$941,400
$790,080
3,900
14,900
234,000
309,000
93,500
$790,000
Transcribed Image Text: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 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 % 2025 times times 138,500 24,900 % 114,000 309,000 309,000 (121,500) $1,066,900 $118,200 11,700 12,900 114,000 12,980 490,000 309,000 125,100 114,000 219,000 144,000 7,080 $75,000 $134,780 7,800 19,500 294,000 309,000 236,100 $1,066,900 $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.) 0 249,000 279,000 219,000 (82,500) (51,000) $941,400 $790,080 3,900 14,900 234,000 309,000 93,500 $790,000
Required information
[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
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 assetst
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets;
Investment in bonds
Land
Equipment
Less: Accumulated depreciation
2025
$3,555,000
2,489,000
1,066,000
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
964,000
39,000
0
22,500
8,900
1,034,400
31,600
2024
$3,081,000
1,959,000
1,122,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
867,000
31,500
8.900
19,500
52,500
979,400
142,600
2025
$214,500
88,500
138-500
14/900
114,000
309.000
309,000
2024
$195,000
90,000
114,000
12,900
114,000
219,000
279,000
(121,500) (82,500)
$1,066,900
$941,400
2023
$153,000
69,000
144,000
7,080
249,000
219,000
(51,000)
$790,000
Transcribed Image Text:Required information [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 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 assetst Cash Accounts receivable Inventory Prepaid rent Long-term assets; Investment in bonds Land Equipment Less: Accumulated depreciation 2025 $3,555,000 2,489,000 1,066,000 Total assets Liabilities and Stockholders' Equity Current liabilities: 964,000 39,000 0 22,500 8,900 1,034,400 31,600 2024 $3,081,000 1,959,000 1,122,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 867,000 31,500 8.900 19,500 52,500 979,400 142,600 2025 $214,500 88,500 138-500 14/900 114,000 309.000 309,000 2024 $195,000 90,000 114,000 12,900 114,000 219,000 279,000 (121,500) (82,500) $1,066,900 $941,400 2023 $153,000 69,000 144,000 7,080 249,000 219,000 (51,000) $790,000
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