The following income statement and balance sheet for Virtual Gaming Systems are provided.

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015
Net sales		$3,041,000
Cost of goods sold		1,951,000
Gross profit		1,090,000
Expenses:
Operating expenses	$859,000
Depreciation expense	27,500
Loss on sale of land	8,100
Interest expense	15,500
Income tax expense	49,000
Total expenses		959,100
Net income		$ 130,900

VIRTUAL GAMING SYSTEMS Balance Sheet December 31
	2015	2014
Assets
Current assets:
Cash	$187,000	$145,000
Accounts receivable	82,000	61,000
Inventory	106,000	136,000
Prepaid rent	12,100	6,120
Long-term assets:
Investment in bonds	106,000	0
Land	211,000	241,000
Equipment	271,000	211,000
Less: Accumulated depreciation	(70,500)	(43,000)
Total assets	$904,600	$757,120
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 67,000	$ 82,000
Interest payable	6,200	3,100
Income tax payable	15,500	14,100
Long-term liabilities:
Notes payable	286,000	226,000
Stockholders' equity:
Common stock	301,000	301,000
Retained earnings	228,900	130,920
Total liabilities and stockholders