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Required Information Problem 12-6A Use ratios to analyze risk and profitability (L012-3, 12-4) (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 $3,475,000 $3,001,000 Cost of goods sold 2, 473,000 1,943,000 Gross profit 1,002,000 1,058,000 Expenses : Operating expenses 948,000 851,000 Depreciation expense 23,000 23,500 Loss on sale of land 7,300 Interest expense 14,500 11,500 Income tax expense 7,300 44,500 Total expenses 992,800 937,800 Net income 9,200 120,200 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2020 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 $ 197,500 71,500 121,500 13,300 $179,000 74,000 98,000 11,300 $137,000 53,000 128,000 5,160 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 98,000 293,000 293,000 (81,500) $1,006,300 98,000 203,000 263,000 (58,500). $867,800 233,000 203,000 (35,000) $724,160 $ 254,400 6,900 11,300 $ 59,000 4,600 11,500 $ 96,060 2,300 13,300 330,000 278,000 218,000 293, 000 293,000 110,700221,700 $1,006,300 $867,800 293,000 101,500 $724,160 Problem 12-6A Part 1 492 of 4 Next > ed Problem 12-6A Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to nces + 2021 times 2022 times times times Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio to 1 to 1