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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

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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 2021 Net sales $3,530,000 $3,056,000 Cost of goods sold 2,484,000 1,954,000 Gross profit 1,046,000 1,102,000 Expenses : Operating expenses 959,000 862,000 Depreciation expense 34,000 29,000 Loss on sale of land 0 8,400 Interest expense 20,000 17,000 Income tax expen 8,400 50,000 Total expenses 1,021,400 966,400 Net income $ 24,600 $ 135,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 207,000 81,000 131,000 14,400 $190,000 85,000 109,000 12,400 $148,000 64,000 139,000 6,480 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 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 109,000 109,000 0 304,000 214,000 244,000 304,000 274,000 214,000 (109,000) (75,000). (46,000) $1,041,400 $918,400 $769,480 $ 154,200 10,200 12,400 $ 70,000 $122,680 6,800 3,400 17,000 14,400 289,000 229,000 440,000 304,000 120.600 $1,041,400 304,000 231,600 $918,400 304,000 96,000 $ 769,480 Required information 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 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 207,000 $190,000 $148,000 81,000 85,000 64,000 131,000 109,000 139,000 14,400 12,400 6,480 109,000 109,000 0 304,000 214,000 244,000 304,000 274,000 214,000 (109,000). (75,000). (46,000) $1,041,400 $918,400 $ 769,480 $ 154,200 10,200 12,400 $ 70,000 $122,680 6,800 3,400 17,000 14,400 440,000 289,000 229,000 304,000 304,000 304,000 120,600 231,600 96,000 $1,041,400 $918,400 $769, 480 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio timos times times times to 1 % to 1 %

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