B. The following income statement and balance sheets for Virtual Gaming Systems are provided. ped VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,066,000 Cost of goods sold 1,956,000 Gross profit 1,110,000 Expenses : Operating expenses $864,000 Depreciation expense 30,000 Loss on sale of land 8,600 Interest expense 18,000 Income tax expense 54,000 Total expenses 974,600 Net income $ 135,400 ook nt ences VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $ 192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6,720 111,000 111,000 216,000 276,000 (78,000) $927,600 0 246,000 216,000 (48,000) $777, 720 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 $ 72,000 7,200 18,000 $ 87,000 3,600 ped 14,600 ok 291,000 231,000 nt 306,000 233,400 $927,600 306,000 135,520 $777,720 ences Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final answer to 1 decimal place.) times Risk Ratios 1 Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory days times days 291,000 231,000 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 306,000 233,400 $927,600 306,000 135,520 $777,720 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final answers to 1 decimal place.) times days times Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3 Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7 Debt to equity ratio 8. Times interest earned ratio days to 1 to 1 % times