es 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 $3,016,000 Cost of goods sold 1,946,000 Gross profit 1,070,000 Expenses: Operating expenses $854,000 Depreciation expense 25,000 Loss on sale of land. 7,600. Interest expense 13,000 Income tax expense 44,000 Total expenses 943,600 Net income $ 126,400 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 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 $182,000 77,000 $140,000 56,000 101,000 131,000 11,600 5,520 101,000 0 206,000 236,000 266,000 206,000 (63,000) (38,000) $881,600 $736,520 $ 62,000 $ 77,000 5,200 2,600 13,000 13,600 Long-term liabilities: Notes payable 281,000 221,000 Stockholders' equity: Common stock 296,000 296,000 Retained earnings 224,400 126,320 Total liabilities and stockholders' equity $881,600 $736,520