Question

does not indicate completion. Return to questi Required information [The following information applies to the questions displayed below.] Part 1 of 2 10 points Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,555,000 $3,081,000 Cost of goods sold 2,489,000 1,959,000 Gross profit 1,066,000 1, 122,000 Expenses: Operating expenses 964,000 867,000 Depreciation expense 39,000 31,500 Loss on sale of land 8,900 Interest expense 22,500 19,500 Income tax expense 8,900 52,500 Total expenses 1,034,400 979,400 Net income $ 31,600 $ 142,600

Answer 1

Answer:

		2021	2022
1	Gross profit Rate = Gross profit / Net sales
	Net sales	3,081,000	3,555,000
	Cost of goods sold	1,959,000	2,489,000
	Gross profit	1,122,000	1,066,000
	Net sales	3,081,000	3,555,000
	Gross profit rate	36.42%	29.99%
2	Return on assets = net income / Average total assets
	Net income	142,600	31,600
	Beginning total assets	790,080	941,400
	Ending total assets	941,040	1,066,900
	Average total assets	865,560	1,004,150
	Return on assets	16.47%	3.15%
3	Profit margin = net income / net sales
	Net income	142,600	31,600
	Net sales	3,081,000	3,555,000
	Profit margin	4.63%	0.89%
4	Assets turnover ratio = Net sales / average total assets
	Net sales	3,081,000	3,555,000
	Beginning total assets	790,080	941,400
	Ending total assets	941,040	1,066,900
	Average total assets	865,560	1,004,150
	Assets turnover ratio	3.56	3.54	Times