The following income statement and balance sheet for Virtual Gaming Systems are provided. VIRTUAL GA

The following income statement and balance sheet for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS
Income Statement
For the year ended December 31, 2012   Sales revenue $3,046,000       Cost of goods sold 1,963,000          Gross profit 1,083,000       Expenses:       Operating expenses 859,000           Depreciation expense 38,000           Loss on sale of land 9,000           Interest expense 15,800           Income tax expense 49,600             Total expenses 971,400       Net income $ 111,600     VIRTUAL GAMING SYSTEMS
Balance Sheet
December 31 2012 2011   Assets   Current assets:       Cash $ 220,000       $ 145,000              Accounts receivable 106,000       62,000              Inventory 108,000       140,000              Prepaid rent 19,000       16,000        Long-term assets:       Investment in bonds 129,000       0              Land 222,000       255,000              Equipment 171,000       174,000              Less: Accumulated depreciation (74,000)       (36,000)                   Total assets $ 901,000       $ 756,000          Liabilities and Stockholders’ Equity   Current liabilities:       Accounts payable $ 75,000       $ 95,000              Interest payable 7,000       16,000              Income tax payable 20,000       16,000          Long-term liabilities:       Notes payable 295,000       243,000          Stockholders’ equity:       Common stock 276,000       241,000              Retained earnings 228,000       145,000                Total liabilities and stockholdersAc€?c equity $ 901,000       $ 756,000        Required:

Assuming that all sales were on account, calculate the following risk ratios for 2012.

Debit to Equity ratio ___%

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Times interest earned ratio ___ times

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15