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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
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 $3,535,000 $3,061,000 Cost of goods sold 2,485,000 1,955,000 Gross profit 1,050,000 1,106,000 Expenses: Operating expenses 960,000 863,000 Depreciation expense 35,000 29,500 Loss on sale of land 8,500 Interest expense 20,500 17,500 Income tax expense 8,500 50,500 Total expenses 1,024,000 969,000 Net income $ 26,000 $ 137,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 208,500 82,500 132,500 14,500 $191,000 86,000 110,000 12,500 $149,000 65,000 140,000 6,600 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets 110,000 305,000 305,000 (111,500) $1,046,500 110,000 215,000 275,000 (76,500) $923,000 245,000 215,000 (47,000) $773,600 $ 147,000 10,500 12,500 $ 71,000 7,000 17,500 $125,100 3,500 14,500 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 450,000 290,000 230,000 305,000 121,500 $1,046,500 305,000 232,500 $923,000 305,000 95,500 $773,600 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratio times times times times Inventory turnover ratio Current ratio Debt to equity ratio to 1 % to 1 %
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