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VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,470,000 $2,996,000 Cost of goods sold 2,472,000 1,942,000 Gross profit 998,000 1,054,00 "Expenses : Operating expenses 947,000 850, eee Depreciation expense 22,000 23,00 Loss on sale of land 7,200 Interest expense 14,000 11,eee Income tax expense 7,200 44,000 Total expenses 990, 200 935,200 Net income 7,800 $ 118,888 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 197,000 71,000 121,000 13,200 $178,000 73,eee 97,eee 11, 200 $136,000 52,000 127, eee 5,040 97,000 292,000 292,00 (79, 000) $1,004,200 97, eee 202,eee 262,eee (57, e8e) $863, 2ee 232, eee 202,000 (34, eee) $720,040 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 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 264,600 6,600 11, 200 $ 58,00 4,400 11,eee $ 93,640 2,2ee 13, 200 320, ene 277, eee 217,699 292,eee 109,800 $1,004,200 292,eee 220,800 $863,200 292,eee 102,000 $720, 040 Problem 12-6A Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Gross profit ratio Return on assets Profit margin Asset turnover times times

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