7. Calculate the following ratios: Gross profit, return on equity, current ratio, debt to equity, profit margin, and price to earnings for 2018 using the following information:
I can not find the return on equity. is it 139,000 divided by 498,000 but how do you get the 498,000
- Attachment 1
- Attachment 2
VIRTUAL GAMING SYSTEMSIncome StatementFor the year ended December 31, 2018Net sales$3,086,000Cost of goods sold1,960,000Gross profit1,126,000Expenses:Operating expenses$868,000Depreciation expense32,000Loss on sale of land9,000Interest expense20,000Income tax expense58,000Total expenses987,000Net income$ 139,000
