1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.)

Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3,540,000 $3,066,000 Cost of goods sold 2,486,000 1,956,000 Gross profit 1,054,000 1,110,000 Expenses: Operating expenses 961,000 864,000 Depreciation expense 36,000 30,000 Loss on sale of land 0 8,600 Interest expense 21,000 18,000 Income tax expense 8,600 51,000 Total expenses 1,026,600 971,600 Net income 27,400 $ 138,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 210,000 84,000 134,000 14,600 $192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6, 720 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 111,000 306,000 306,000 (114,000) $1,051,600 111,000 216,000 276,000 (78,000) $927,600 0 246,000 216,000 (48,000) $777, 720 $ 139,800 10,800 12,600 $ 72,000 7,200 18,000 $127,520 3,600 14,600 460,000 291,000 231,000 306,000 122,400 $1,051, 600 306,000 233,400 $927,600 306,000 95,000 $777, 720 2021 2022 Current ratio to 1 to 1 5 Debt to equity ratio % % 2021 2022 % % Gross profit ratio Return on assets % %