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Required information [The following information applies to the questions displayed below.] Income statement and balance sheet data for Virtual Gaming Systems are provided below. VIRTUAL
Required information
[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 Statements | |||||||
For the years ended December 31 | |||||||
2022 | 2021 | ||||||
Net sales | $ | 3,560,000 | $ | 3,086,000 | |||
Cost of goods sold | 2,490,000 | 1,960,000 | |||||
Gross profit | 1,070,000 | 1,126,000 | |||||
Expenses: | |||||||
Operating expenses | 965,000 | 868,000 | |||||
Depreciation expense | 40,000 | 32,000 | |||||
Loss on sale of land | 0 | 9,000 | |||||
Interest expense | 23,000 | 20,000 | |||||
Income tax expense | 9,000 | 58,000 | |||||
Total expenses | 1,037,000 | 987,000 | |||||
Net income | $ | 33,000 | $ | 139,000 | |||
VIRTUAL GAMING SYSTEMS | ||||||||||||
Balance Sheets | ||||||||||||
December 31 | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash | $ | 216,000 | $ | 196,000 | $ | 154,000 | ||||||
Accounts receivable | 90,000 | 91,000 | 70,000 | |||||||||
Inventory | 140,000 | 115,000 | 145,000 | |||||||||
Prepaid rent | 15,000 | 13,000 | 7,200 | |||||||||
Long-term assets: | ||||||||||||
Investment in bonds | 115,000 | 115,000 | 0 | |||||||||
Land | 310,000 | 220,000 | 250,000 | |||||||||
Equipment | 310,000 | 280,000 | 220,000 | |||||||||
Less: Accumulated depreciation | (124,000 | ) | (84,000 | ) | (52,000 | ) | ||||||
Total assets | $ | 1,072,000 | $ | 946,000 | $ | 794,200 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 161,000 | $ | 76,000 | $ | 91,000 | ||||||
Interest payable | 12,000 | 8,000 | 4,000 | |||||||||
Income tax payable | 13,000 | 20,000 | 15,000 | |||||||||
Long-term liabilities: | ||||||||||||
Notes payable | 450,000 | 295,000 | 235,000 | |||||||||
Stockholders' equity: | ||||||||||||
Common stock | 310,000 | 310,000 | 310,000 | |||||||||
Retained earnings | 126,000 | 237,000 | 139,200 | |||||||||
Total liabilities and stockholders equity | $ | 1,072,000 | $ | 946,000 | $ | 794,200 | ||||||
Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) receivables turnover ratio, inventory turnover ratio, current ratio,debt to equity ratio
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