The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,026,000 Cost of goods sold 1,948,000 Gross profit 1,078,000 Expenses: Operating expenses $856,000 Depreciation expense 26,000 Loss on sale of land 7,800 Interest expense 14,000 Income tax expense 46, eee Total expenses 949,800 Net income $ 128,200 December 31 2021 2020 $184,000 79,000 103,000 11,800 $142,000 58,000 133,000 5,768 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 103,000 208,000 268,000 (66,000) $890,800 238,000 208,000 (40,000) $744,760 64, eee 5,600 14, eee $ 79,00 2,800 13,800 283,000 223, eee 298,eee 226,200 $899,800 298,000 128, 160 $744,760 Ch Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round you answers to 1 decimal place.) times Risk Ratios Receivables turnover ratio Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio Acid-test ratio Debt to equity ratio 8. Times interest earned ratio days times days to 1 to 1 times VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,011,000 Cost of goods sold 1,945,000 Gross profit 1,066,000 Expenses: Operating expenses $853,000 Depreciation expense 27,000 Loss on sale of land 7,500 Interest expense 12,500 Income tax expense 43,000 Total expenses 943,000 Net income $ 123,000 ZUZU $181,000 76,000 100,000 $139,000 55,000 130,000 5,400 11,500 100,000 205,000 265,000 (64,000) $874,500 235,000 205,000 (37,000) $732,400 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 $ 61,000 5,000 12,500 105,900 2,500 13,500 280,000 220,000 295,000 221,000 $874,500 295,000 95,500 $732,400 Earnings per share for the year ended December 31, 2021, are $1.30. The closing stock price on December 31, 2021, is $26.80. Required: Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.) Profitability Ratios 1. Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 6. Price-earnings ratio times