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[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
	2025	2024
Net sales	$3,480,000	$3,006,000
Cost of goods sold	2,474,000	1,944,000
Gross profit	1,006,000	1,062,000
Expenses:
Operating expenses	949,000	852,000
Depreciation expense	24,000	24,000
Loss on sale of land	0	7,400
Interest expense	15,000	12,000
Income tax expense	7,400	45,000
Total expenses	995,400	940,400
Net income	10,600	121,600

VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
	2025	2024	2023
Assets
Current assets:
Cash	$198,000	$180,000	$138,000
Accounts receivable	72,000	75,000	54,000
Inventory	122,000	99,000	129,000
Prepaid rent	13,400	11,400	5,280
Long-term assets:
Investment in bonds	99,000	99,000	0
Land	294,000	204,000	234,000
Equipment	294,000	264,000	204,000
Less: Accumulated depreciation	(84,000)	(60,000)	(36,000)
Total assets	$1,008,400	$872,400	$728,280
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$244,200	$60,000	$98,480
Interest payable	7,200	4,800	2,400
Income tax payable	11,400	12,000	13,400
Long-term liabilities:
Notes payable	340,000	279,000	219,000
Stockholders' equity:
Common stock	294,000	294,000	294,000
Retained earnings	111,600	222,600	101,000
Total liabilities and stockholders equity	$1,008,400	$872,400	$728,280

Required:

1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.)