Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31 2013 2012 Sales revenue $3,510,000 $3,036,000 Cost of goods sold 2,480,000 1,950,000 Gross profit 1,030,000 1,086,000 Expenses: Operating expenses 955,000 858,000 Depreciation expense 30,000 27,000 Loss on sale of land 0 8,000 Interest expense 18,000 15,000 Income tax expense 8,000 48,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total expenses 1,011,000 956,000 Net income $ 19,000 $ 130,000 VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2013 2012 2011 Assets Current assets: Cash $ 201,000 $186,000 $144,000 Accounts receivable 75,000 81,000 60,000 Inventory 125,000 105,000 135,000 Prepaid rent 14,000 12,000 6,000 Long-term assets: Investment in bonds 105,000 105,000 0 Land 300,000 210,000 240,000 Equipment 300,000 270,000 210,000 Less: Accumulated depreciation (99,000) (69,000) (42,000) Total assets $1,021,000 $900,000 $753,000 -------------------------------------------------------------------------------- Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 78,000 $ 66,000 $ 81,000 Interest payable 9,000 6,000 3,000 Income tax payable 12,000 15,000 14,000 Long-term liabilities: Notes payable 400,000 285,000 225,000 Stockholders' equity: Common stock 300,000 300,000 300,000 Retained earnings 222,000 228,000 130,000 Total liabilities and stockholders