Income statements and balance sheets data for Virtual Gaming Systems are provide
ID: 2574791 • Letter: I
Question
Income statements and balance sheets data for Virtual Gaming Systems are provided below VIRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 2019 2018 Net sales $3,525,000 $3,051,000 Cost of goods sold 2,483,000 1,042,000 958,000 1,953000 Gross profit 1,098,000 Expenses Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense 861,000 28,500 8,300 16,500 49,500 33,000 0 19,500 8,300 Total expenses 1.018,800 963,800 Net income $ 23.200 134.200Explanation / Answer
Answer.
3525000/[(1036300+913800)/2]=
3.62 Times
2019 2018 Debt to Equity Ratio= Debt / Equity Funds 430000/(303000+119700)= 50.86 % 288000/(303000+230700)= 53.96% Gross Profit Ratio= Gross Profit/Net Sales 1042000/3525000= 29.56% 1098000/3051000= 35.99% Return On Assets= Total Return/ Total Assets 23200/1036300 = 2.24 % 134200/913800=14.69% Profit Margin = Profit / Sales 23200/3525000=0.66 % 134200/3051000=4.40% Assets turnover = Sales/ Average total assets
3525000/[(1036300+913800)/2]=
3.62 Times
3051000/[(913800+765360)/2]= 3.63 Times