Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 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 year ended December 31 2019 2018 $3,550,000 $3,076,000 Net sales 1,958,000 2,488,000 Cost of goods sold 1,062,000 Gross profit 1118.000 Expenses: 963,000 866,000 Operating expenses 38,000 31,000 Depreciation expense Loss on sale of land 8,800 19,000 22,000 Interest expense 52,000 Income tax expense 8,800 1,031,800 976,800 Total expenses 30,200 141,200 Net income