! Required information [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 sold 2,488,000 1,958,888 Gross profit 1,062,000 1,118,000 Expenses: Operating expenses 963,000 866,000 Depreciation expense 38,000 31,eee Loss on sale of land 8,800 Interest expense 22,000 19,000 Income tax expense 8,800 52,000 Total expenses 1,031,800 976,800 Net income $ 30,200 $ 141,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 213,000 $194,000 $152,600 87,000 89,000 68,000 137,000 113,000 143,000 14,800 12,800 6,960 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 113,000 113,000 308,000 218,000 248, eee 308,000 278,000 218,000 (119,000) (81,000) (50,000) $1,061,800 $936,800 $785,960 $ 125,400 11,400 12,800 $ 74,000 $132,360 7,600 3,800 19,000 14,800 480,000 293,000 233, eee 308,000 308,000 308,000 124, 200 235,200 94,000 $1,061,800 $936,800 $785,960 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2022 times times to 1 to 1 % % 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) 2021 2022 % % Gross profit ratio Return on assets % % % Profit margin % Asset turnover times times