The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2015 Net sales Gain on sale of land $ 2,600,000 7,000 Total revenues 2,607,000 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $1,650,000 615,000 33,000 34,000 80,000 Total expenses 2,412,000 Net income S 195,000 VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2015 2014 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent S 409,500 $ 343,800 80,000 145,000 7.200 64,000 160,000 4,600 Long-term assets: 205,000 Investments Land Equipment Accumulated depreciation 110,000 215,000 270,000 250,000 220,000 143,000 110,000) Total assets S 1.165,100 $1,066,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: S 35,000 $ 98,000 4,000 29,000 5,100 25,000 265,000 460,000 Notes payable 235,000 Stockholders' equity: Common stock Retained earnings 400,000 300,000 375,000 Total liabilities and stockholders' ity S1.165,100 $1,066,000