Virtual gaming systems income statement for the year ended december 31, 2018 net sales cost of goods sold $3,086,000 1,960,000 gross profit 1,126,000 operating expenses depreciation expense loss on sale of land interest expense income tax expense $868,000 32,000 9,000 20,000 58,000 total expenses 987,000 net income $139,000 virtual gaming systems balance sheets december 31 2018 2017 assets current assets: cash accounts receivable inventory $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 rent long-term assets investment in bonds land equipment less: accumulated depreciation 115,000 220,000 280,000 (84,000) 250,000 220,000 (52,000) total assets s946.000 $794,200 liabilities and stockholders' equity current liabilities accounts payable interest payable income tax payable $76,000 8,000 20,000 s91,000 4,000 15,000 long-term liabilities: notes payable 295,000 235,000 stockholders' equity: common stock retained earnings 310,000 237,000 310,000 139,200 total liabilities and stockholders' equity s946,000 $794,200 earnings per share for the year ended december 31, 2018, are $1.40. the closing stock price on december 31, 2018, is $28.30 required calculate the following profitability ratios for 2018. (round your answers to 1 decimal place.) profitability ratios 1. gross profit ratio 2. return on assets 3. profit margin 4. asset turnover 5. return on equity 6. times ratio

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.

Which of these is true about a mandated reporter

Mason farms purchased a building for $689,000 eight years ago. six years ago, repairs costing $136,000 were made to the building. the annual taxes on the property are $11,000. the building has a current market value of $840,000 and a current book value of $494,000. the building is totally paid for and solely owned by the firm. if the company decides to use this building for a new project, what value, if any, should be included in the initial cash flow of the project for this building? $0$582,000$840,000$865,000$953,000