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 $3,061,000 Cost of goods sold 1,955,000 Gross profit 1,106,000 Expenses : Operating expenses $863,000 Depreciation expense 29,500 Loss on sale of land 8,500 Interest expense 17,500 Income tax expense 53,000 Total expenses 971, 500 Net income 134,500 $ 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 Equipment Less: Accumulated depreciation $191,000 86,000 110,000 12,500 $149,000 65,000 140,000 6,600 110,000 215,000 275,000 (76,500) 245,000 215,000 (47,090) BE