Ratios

The following information applies to the questions displayed below] Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31 2016 2015 Net sales Cost of goods sold 2,490,000 1960,000 Gross proft Expenses: 1,070,000 1126,000 965,000 40,000 Depreciation expense Loss on sale of land Interest expense Income tax expense 868,000 32,000 9,000 20,000 23,000 1037000 98000 $33,000 $139,000 Total expenses Net income VIRTUAL GAMING SYSTEMS Balance Sheet 2016 2015 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $216,000 $196,000 $154,000 90,000 40,000 145,000 13,000 7.200 0 220,000 Long-term assets: Investment in bonds Land 115,000 115,000 220,000 280,000 310,000 Less: Accumulated depreciation Total assets $1,072,000 $946,000 $794,200 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable s 161,000 12,000 13,000 $137200 $76,000 8,000 20,000 4,000 Income tax payable 15,000 Long-term liabilities: Notes payable 450,000 295,000 235,000 Stockholders' equity Common stock Retained earnings 310,000 237,000 310,000 93,000 126,000 Total liabillties and stockholders' equity 1,072,000 $946,000 $794,200