Question
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31,
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 $3,876,088 Cost of goods sold 1,958,880 Gross profit 1,118,000 Expenses! Operating expenses $866,808 Depreciation expense 31,808 Loss on sale of land 8,888 Interest expense 19,608 Income tax expense 56,888 Total expenses Net income 988,880 137,288 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2828 Assets Current assets! Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $194,000 $152,000 80,000 68,080 113,088 143,000 12,880 6,960 113,000 B Land 218,000 248,000 Equipment 278,000 218,000 Less: Accumulated depreciation (81,000) (50,000) Total assets $936,800 $785,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $74,000 $ 89,000 Interest payable 7,608 3,800 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 10,000 14,800 293,000 233,000 Common stock. Retained earnings Total liabilities and stockholders' equity 368,000 308,000 235,280 137,360 $936,880 $785,060 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your final ans to 1 decimal place.) Rick Ratior 1. Receivables turnover ratio 2 Average collection period times days 3. Inventory turnover ratio 4. Average days in Inventory timan days
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