Return to question Problem 12-4A Calculate risk ratios (LO12-3) The following income statement and balance sheets for Virtual Gaming Systems are provided. 3.75 points VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,086,000 Cost of goods sold 1,960,000 Gross profit 1,126,000 Expenses: Operating expenses $868.000 Depreciation expense 32,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,000 Total expenses 987,000 Net income $ 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $196,000 91,000 115,000 13,000 $154,000 70,000 145,000 7,200 115,000 220,000 280,000 (84,000) $946,000 250,000 220,000 (52,000) $794,200 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 $ 76,000 8,000 20,000 $ 91,000 4,000 15,000 295,000 235,000 310,000 237,000 $946,000 310,000 139,200 $794,200 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final answers to 1 decimal place.) X Answer is not complete. 1. Risk Ratios Receivables turnover ratio Average collection period Inventory turnover ratio Average days in inventory Current ratio Acid-test ratio Debt to equity ratio Times interest earned ratio 38.3 9.5 15.1 24.2 4.0 2.6 X 40.0 times days times days to 1 to 1 % times