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 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land. Interest expense Income tax expense Total expenses Net income $3,031,000 1,949,000 1,082,000 $857,000 26,500 7,900 14,500 47,000 952,900 $ 129,100 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 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 $185,000 80,000 $143,000 59,000 104,000 134,000 11,900 5,880 104,000 209,000 239,000 269,000 209,000 (67,500) (41,000) $895,400 $748,880 $ 65,000 5,800 $ 80,000 2,900 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 14,500 13,900 284,000 224,000 299,000 299,000 227,100 129,080 $895,400 $748,880