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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 $3,001,000 Cost of goods sold 1,943,000 Gross profit 1,058,000 Expenses: Operating expenses $851,000 Depreciation expense Loss on sale of land 7,300 Interest expense 11,500 Income tax expense 41,000 Total expenses 934,300 Net income $ 123,700 23,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2828 $179,000 74,000 98,080 11,300 $137,000 53,800 128,000 5,160 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 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 98,888 203,000 263, eee (58,580) $867,800 233,000 283, 80e (35,880) 5724,160 559,000 4,600 11,500 $ 74,000 2,300 13,300 278,000 215,000 293,000 221,700 293,000 123.560 Retained earnings Total liabilities and stockholders' equity 221,700 $867,800 123,560 $724,160 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.) inces 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 eamed ratio times days times days to 1 to 1 % times
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