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 $3,086,000 Cost of goods 1,960,000 sold Gross profit 1,126,000 Expenses: Operating $868,000 expenses Depreciation 32,000 expense Loss on sale of land 9,000 Interest 20,000 expense Income tax 58,000 expense Total expenses Net income 987,000 $ 139,000 VIRTUAL GAMING SYSTEMS Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Balance Sheets December 31 2021 2020 $196,000 $154,000 91,000 70,000 115,000 145,000 13,000 7,200 115,000 220,000 250,000 280,000 220,000 Less: Accumulated depreciation (84,000) (52,000) Total assets Liabilities and Stockholders' Current liabilities: Equity Accounts payable $946,000 $794,200 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $76,000 $91,000 8,000 20,000 4,000 15,000 295,000 235,000 310,000 310,000 237,000 139,200 $946,000 $794,288