Hi,I need help with the attached problem.Thank you. Required:1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimalplace.)Receivables turnover ratioInventory turnover ratioCurrent ratioDebt to equity ratio2024timestimes%2025timestimes% Income statements and balance sheets data for Virtual Gaming Systems are provided below.Net salesCost of goods soldGross profitExpenses:Operating expensesDepreciation expenseLoss on sale of landInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assets:CashVIRTUAL GAMING SYSTEMSIncome StatementsFor the Years Ended December 31Accounts receivableInventoryPrepaid rentLong-term assets:Investment in bondsLandEquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payable2025$3,470,0002,472,000998,000947,00022,000014,0007, 200990, 2007,800Stockholders' equity:Common stockRetained earningsTotal liabilities and stockholders' equityVIRTUAL GAMING SYSTEMSBalance SheetsDecember 312024$2,996,0001,942,0001,054,000850,00023,0007,20011,00044,000935, 200118,8002025$197,00071,000121,00013, 20097,000292,000292,000(79,000)$1,004, 200$264,6006,60011, 200320,000292,000109,800$1,004, 2002024$178,00073,00097,00011, 20097,000202,000262,000(57,000)$863,200$58,0004,40011,000277,000292,000220,800$863,2002023$136,00052,000127,0005,0400232,000202,000(34,000)$720,040$93,6402,20013, 200217,000292,000102,000$720,040

Required: . Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio 2024 times times 2025 times times

Required: . Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio 2024 times times 2025 times times

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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Question

Hi, I need help with the attached problem. Thank you.

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.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2024
times
times
%
2025
times
times
%

Income statements and balance sheets data for Virtual Gaming Systems are provided below.
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
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
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
Income tax payable
Long-term liabilities:
Notes payable
2025
$3,470,000
2,472,000
998,000
947,000
22,000
0
14,000
7, 200
990, 200
7,800
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2024
$2,996,000
1,942,000
1,054,000
850,000
23,000
7,200
11,000
44,000
935, 200
118,800
2025
$197,000
71,000
121,000
13, 200
97,000
292,000
292,000
(79,000)
$1,004, 200
$264,600
6,600
11, 200
320,000
292,000
109,800
$1,004, 200
2024
$178,000
73,000
97,000
11, 200
97,000
202,000
262,000
(57,000)
$863,200
$58,000
4,400
11,000
277,000
292,000
220,800
$863,200
2023
$136,000
52,000
127,000
5,040
0
232,000
202,000
(34,000)
$720,040
$93,640
2,200
13, 200
217,000
292,000
102,000
$720,040

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