The following income statement and balance sheet for Virtual Gaming Systems are
ID: 2472171 • Letter: T
Question
The following income statement and balance sheet for Virtual Gaming Systems are provided. Earnings per share for the year ended December 31, 2012, are $1.00. The closing stock price on December 31, 2012, is $28.00.
Calculate the following profitability ratios for 2012. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)
The following income statement and balance sheet for Virtual Gaming Systems are provided. Earnings per share for the year ended December 31, 2012, are $1.00. The closing stock price on December 31, 2012, is $28.00.
Explanation / Answer
can also be (111500+9000+16400)/0.5(929000+768000) = 16.1%
Profitability Ratios 1. Gross profit ratio 1094000/3046000 35.9 % 2. Return on assets net income/average assets = (111500+9000)/0.5(929000+768000) = 14.2% 3. Profit margin = (111500+9000)/3046000 =4.0%can also be (111500+9000+16400)/0.5(929000+768000) = 16.1%
4. Asset turnover = 3046000/0.5(929000+768000)=3.6 times 5. ROE=(111500+9000)/0.5(543000+419000) = 25.1% 6. Price-earnings ratio = price/eps =28/1 = 28 timesRelated Questions
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