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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
![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](https://content.bartleby.com/qna-images/question/4f532a2d-41c4-4378-bc40-36a341559f3a/eb3dafa9-cf7e-4bf8-be99-65ff5799a9d8/jh2xi3_thumbnail.jpeg)
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](https://content.bartleby.com/qna-images/question/4f532a2d-41c4-4378-bc40-36a341559f3a/eb3dafa9-cf7e-4bf8-be99-65ff5799a9d8/2lxa9am_thumbnail.jpeg)
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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