The following information applies to the questions displayed below) Income statements and balance sheets data for Virtual Gaming Systems are provided below IRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 2019 2018 $3,545,000 $3,071,000 Net sales Cost of goods sold 1957000 2,487000 1,058,000 962,000 Gross profit 1,114,000 37,000 Depreciation expense Loss on sale of land hterest expense Income tax expense 30,500 8,700 18,500 51,500 21,500 8,700 Total expenses 1,029200 974,200 Net income 28,800 139,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2019 2018 2017 Assets Current assets: s 211,500$193,000 88,000 $151,000 67,000 142,000 6,840 Cash Accounts receivable 85,500 135,500 14,700 12,700 Prepaid rent Longterm assets: 112,000 307000 307000 116,500) 112,000 217,000 277.000 (79,500) Investment in bonds Equipment Less: Accumulated depreciation 247000 217000 (49,000) Total assets $1,056,700 $932,200 $781,840 Labilities and Stockholders Equity Current liabiities: Accounts peyeble Interest payable Income tax payable $ 132,600 $73,000 $129,940 3,700 14,700 11,100 12,700 7.400 18,500 292,000 307000 Long-term liabilities: Notes payable 232,000 Stockholders' equity Common stock Retained earnings 307000 307000 94,500 234,300 Total labilities and stockholders' equity $781,840