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 $3,066,000 Cost of goods sold 1,956,000 Gross profit 1, 110,000 Expenses: Operating expenses $864,000 Depreciation expense 30,000 Loss on sale of land 8,600 Interest expense 18,000 Income tax expense 54,000 Total expenses 974,600 Net income $ 135,400 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 $192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6, 720 111,000 216,000 276 AAN 0 246,000 Clinment 21A VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $192,000 87,000 111,000 12,600 $150,000 66,000 141,000 6, 720 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 Total liabilities and stockholders' equity 111,000 216,000 276,000 (78,000) $927,600 0 246,000 216,000 (48,000) $777, 720 $ 72,000 7,200 18,000 $ 87,000 3,600 14,600 291,000 231,000 306,000 233, 400 $927,600 306,000 135,520 $777, 720 Required: Total liabilities and stockholders' equity $927,600 $777, 720 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 36 to 1 decimal place.) 1. WIN Answer is complete but not entirely correct. Risk Ratios Receivables turnover ratio 40.0 times Average collection period 9.0 days Inventory turnover ratio 15.5 times Average days in inventory 23.0 X days Current ratio 4.1 to 1 Acid-test ratio 2.9 to 1 Debt to equity ratio 71.9 % Times interest earned ratio 11.5 times 4. 6 5. 6. 7. 8