4 The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,076,000 Cost of goods sold 1,958,00 Gross profit 1,118,000 Expenses: Operating expenses $866,000 Depreciation expense 27,000 Loss on sale of land 8,800 Interest expense 19,000 Income tax expense 56,000 Total expenses 976,800 Net income $ 141,200 Book ferences VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $194,000 89,000 113,000 12,800 $152,000 68,000 143,800 6,960 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 113,000 218,000 278,000 (72,000) $948,800 @ 248,000 218,000 (50,280) $785,960 $ 74,000 7,600 $ 124,360 3,800 ADA Mc GERE