Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed belowj Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 2019 2018 $3,515,000 $3,041,000 Net sales 2,481,000 1,951,000 Cost of goods sold Gross profit 1,034,000 1,090,000 Expenses: 956,000 859,000 Operating expenses 27,500 31,000 Depreciation expense Loss on sale of land 8100 15,500 Interest expense 18,500 48,500 Income tax expense 8100 1,013,600 958,600 Total expenses 20,400 131,400 Net income