The following income statement and balance sheets for Virtual Gaming Systems are VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold S3,041,000 1,951,000 Gross profit 1,090,000 Expenses Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense 5859,000 27,500 8,100 15,500 49.000 Total expenses 959,100 Net income S 130,900 VIRTUAL GAMING SYSTEMS Balance Sheets 2018 2017 Assets Current assets: S187,000 82.000 106,000 12,100 Cash Accounts receivable S145,000 61,000 136,000 6,120 Prepaid rent Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation 106,000 211,000 271,000 (70,500) 241,000 211,000 (43,000) Total assets S904,600 S757,120 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable S 67,000 6,200 15,500 S 82,000 3,100 14,100 Long-term liabilities: Notes payable 286,000 226,000 Stockholders' equity Common stock Retained earnings 301,000 228,900 301,000 130,920 Total liabilities and stockholders' equity S904,600 S757,120 Required: Assuming that all sales were on account, calculate the following risk ratios for 2018. Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Curent ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio 24