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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 i 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: Accou payable Interest payable Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 $3,500,000 2,478,000 1,022,000 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 298,000 (94,000) $1,016,800 $203,400 8,400 11,800 380,000 298,000 115,200 $1,016,800 2024 $184,000 79,000 103,000 11,800 103,000 208,000 268,000 (66,000) $890,800 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.) $64,000 5,600 14,000 283,000 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760

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 i 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: Accou payable Interest payable Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 $3,500,000 2,478,000 1,022,000 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 298,000 (94,000) $1,016,800 $203,400 8,400 11,800 380,000 298,000 115,200 $1,016,800 2024 $184,000 79,000 103,000 11,800 103,000 208,000 268,000 (66,000) $890,800 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.) $64,000 5,600 14,000 283,000 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760

College Accounting (Book Only): A Career Approach
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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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 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 Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity. 2024 2025 $3,500,000 2,478,000 1,022,000 times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 $203,400 8,400 11,800 2024 103,000 208,000 298,000 268,000 (94,000) (66,000) $1,016,800 $890,800 380,000 298,000 115,200 $1,016,800 $184,000 79,000 103,000 11,800 $64,000 5,600 14,000 283,000 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.) 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760
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 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 Income tax payable Long-term liabilities: Notes payable Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity. 2024 2025 $3,500,000 2,478,000 1,022,000 times times 953,000 28,000 0 17,000 7,800 1,005,800 16,200 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,026,000 1,948,000 1,078,000 times times % 856,000 26,000 7,800 14,000 47,000 950,800 127,200 2025 $200,000 74,000 124,000 13,800 103,000 298,000 $203,400 8,400 11,800 2024 103,000 208,000 298,000 268,000 (94,000) (66,000) $1,016,800 $890,800 380,000 298,000 115,200 $1,016,800 $184,000 79,000 103,000 11,800 $64,000 5,600 14,000 283,000 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.) 298,000 226,200 $890,800 2023 $142,000 58,000 133,000 5,760 e 238,000 208,000 (40,000) $744,760 $108,160 2,800 13,800 223,000 298,000 99,000 $744,760
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