Problem 12-6A Use ratios to analyze risk and profitability (L012-3, 12-4) [The following information applies to the questions displayed below.) 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 $3,550,000 $3,076,000 Cost of goods 2.488,000 1,958,000 sold Gross 1,062,000 1,118,000 profit Expenses: Operating 963,000 866,000 expenses Depreciation 38,000 31,000 expense Loss on sale 0 8,800 of land Interest 22,000 19,000 expense Income tax 8,800 52,000 expense Total 1,031,800 976,800 expenses Net income $ 30,200 $ 141,200 2020 $152,000 68,000 143,000 6 ,960 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 Assets Current assets: Cash $ 213,000 $194,000 Accounts receivable 87,000 89,000 Inventory 137,000 113,000 Prepaid rent 14,800 12,800 Long-term assets: Investment in bonds 113,000 113,000 Land 308,000 218,000 Equipment 308,000 278,000 Less: Accumulated (119,000) (81,000) depreciation Total assets $1,061,800 $936,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 125,400 $ 74,000 Interest payable 11,400 7,600 Income tax payable 12,800 19,000 Long-term liabilities: Notes payable 480,000 293,000 Stockholders' equity: Common stock 308,000 308,000 Retained earnings 124,200 235, 200 Total liabilities and $1,061,800 $936,800 stockholders' equity 248,000 218,000 (50,000) $785,960 $132,360 3,800 14,800 233,000 308,000 9 4,000 $785, 960 Problem 12-6A Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 2022 times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio times to 1 % times to 1 %