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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
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 $ 3,056,000 Cost of goods sold 1,954,000 Gross profit 1, 102,000 Expenses: Operating expenses $ 862,000 Depreciation expense 29,000 Loss on sale of land 8,400 Interest expense 17,000 Income tax expense 52,000 Total expenses 968,400 Net income 133,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 190,000 85,000 109,000 12,400 $ 148,000 64,000 139,000 6,480 109,000 214,000 274,000 (75,000) $918,400 0 244,000 214,000 (46,000) $ 769,480 Assets Current assets. Cash Accounts receivable Inventory Prepaid rent Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation Total ansett 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 $ 70,000 6,800 17,000 $ 95,000 3,400 14,400 299,000 229,000 304,000 231,600 $918,400 304,000 133,680 $ 769,480 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.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 to 1 % times
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