Required information (The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2025 1,082,000 2024 $3,505,000 $3,031,000 2,479,000 1,949,000 1,026,000 954,000 857,000 29,000 26,500 0 7,900 17,500 14,500 7,900 47,500 1,008,400 953,400 17,600 128,600 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 Tong-term liabilities VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 2023 124,500 13,900 $200,500 74,500 $185,000 80,000 $143,000 59,000 134,000 5,880 104,000 11,900 104,000 104,000 0 299,000 209,000 239,000 299,000. 269,000 209,000 (96,500) (67,500) (41,000) $1,018,900 $895,400 $748,880 $193,200 8,700 11,900 $65,000 5,800 14,500 $110,580 2,900 13,900 9 Prev of 4 Next VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Saved Land Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Equipment 2025 2024 2023 $200,500 $185,000 $143,000 74,500 80,000 59,000 124,500 104,000 134,000 13,900 11,900 5,880 104,000 104,000 0 299,000 209,000 239,000 299,000 269,000 Less: Accumulated depreciation 209,000 (96,500) (67,500) (41,000) Total assets $1,018,900 $895,400 $748,880 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $193,200 $65,000 $110,580 Interest payable 8,700 5,800 Income tax payable Long-term liabilities: Notes payable 2,900 11,900 14,500 13,900 390,000 284,000 224,000 Stockholders' equity: Common stock 299,000 299,000 299,000 Retained earnings 116,100 227,100 98,500 Total liabilities and stockholders' equity $1,018,900 $895,400 $748,880 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.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times: times % %