The following income statement and balance sheets for Virtual Gaming Systems are provided.
Required:
Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final answers to 1 decimal place.)
1) Receivable turnover ratio = Sales/Average receivable = 2986000/60500 = 49.4 Times
2) Average collection period = 365/49.4 = 7.4 Days
3) Inventory turnover ratio = Cost of goods sold/average inventory = 1940000/110000 = 17.6 Times
4) Average days in inventory = 365/17.6 = 20.7 Days
6) Acid test ratio = 247000/70000 = 3.5:1
7) Debt equity ratio = 345000/509000 = 67.8%
Note : Please post whole question in the group of 4-4 sub parts as per Chegg guidelines
The following income statement and balance sheets for Virtual Gaming Systems are provided. Required: Assuming that...
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 $3,061,000 1,955,000 1,106,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense $863,000 27,000 8,500 17,500 53,000 Loss on sale of land Interest expense Income tax expense Total expenses 969, 000 $ 137,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: $191,000 86, 000 110,000...
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The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales $3,076,000 1,958,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land 1,118,000 $866,000 31,000 8,800 19,000 56,000 Interest expense Income tax expense Total expenses 980,800 $ 137,200 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets Cash $152,000 68,000 143,000 6,960...
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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 $ 3,550,000 $ 3,076,000 Cost of goods sold 2,488,000 1,958,000 Gross profit 1,062,000 1,118,000 Expenses: Operating expenses 963,000 866,000 Depreciation expense 38,000 31,000 Loss on sale of land 0 8,800 Interest expense 22,000 19,000 Income tax expense 8,800 52,000 Total expenses 1,031,800 976,800 Net income $ 30,200 $ 141,200 VIRTUAL GAMING SYSTEMS...
Problem 12-4A Calculate risk ratios (LO12-3) The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $2,996,000 Cost of goods sold 1,942,000 Gross profit 1,054, 000 Expenses: Operating expenses $850,000 Depreciation expense 23,000 Loss on sale of land ,200 Interest expense ,000 Income tax expense 10,000 Total expenses 931,200 Net income 122,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Assets 2021 2020 Current...
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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 2022 2021 $3,540,000 $3,066,000 1,956,000 1,110,000 Net sales Cost of goods sold 2,486,000 Gross profit Expenses: Operating 1,054,000 961,000 864,000 expenses Depreciation expense Loss on sale of land Interest expense 36,000 30,000 8,600 21,000 18,000 Income tax 8,600 51,000 expense Total expenses 971,600 1,026,600 $138,400...