P12-4A The following income statement and balance sheets for Virtual Gaming Systems are provided. r VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,086,000 Cost of goods sold 1,960,000 Gross profit 1,126,000 Expenses: Operating expenses $868,000 Depreciation expense 32,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,000 Total expenses 987,000 Net income $ 139,000 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 $196,000 91.000 115,000 13,000 $154,000 70.000 145.000 7.200 115,000 220,000 280,000 (84,000) $946.000 0 250,000 220,000 (52.000) $794,200 $ 76,000 8,000 20,000 $ 91,000 4.000 15,000 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 295.000 235,000 310,000 237.000 $946,000 310.000 139,200 $794,200 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. 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