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: $3,086,000 1,960,000 1,126,000 Operating expenses $868,000 Depreciation expense 32,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,000 Total expenses Net income 987,000 $ 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cashi 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: Notae navahla $196,000 $154,000 91,000 70,000 115,000 145,000 13,000 7,200 115,000 0 220,000 250,000 280,000 220,000 (84,000) (52,000) $946,000 $794,200 $ 76,000 8,000 20,000 $ 91,000 4,000 15,000 205 000 235 000