Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025:
2025: $3,460,000 $2,470,000 $990,000
2024: $2,986,000 $1,940,000 $1,046,000
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
$945,000 $20,000
$848,080 $22,000 $7,000 $10,000 $0 $930,000 $116,000
$13,000 $7,000 $985,000 $5,000
VIRTUALGAMINGSYSTEMS Balance Sheets December 31
2025
2024
2023
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
$196,000 $70,000 $120,000 $13,000
$176,000 $71,000 $95,000 $11,000
$134,000 $50,000 $125,000 $4,800
$95,000 $290,000 $290,000 $74,000 $1,000,000
$95,000 $200,000 $260,000 $54,000 $854,000
$230,000 $200,000 $32,000 $711,800
$285,000 $6,000 $11,000
$56,000 $4,000 $10,000
$88,800 $2,000 $13,000
$300,000
$275,000
$215,000
$290,000 $108,000 $1,000,000
$290,000 $219,000 $854,000
$290,000 $103,000 $711,800
Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to the nearest whole number.)
2024
2025
Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio
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