The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2018 Net sales Gain on sale of land S 2,600,000 7,000 Total revenues 2,607,000 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense S 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 Sheets December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent S 409,500 S 343,800 80,000 145,000 7,200 64.000 160,000 4.600 Long-term assets Investments Land Equipment Accumulated depreciation 110,000 270,000 220.000 143,000) (110,000) 205,000 215,000 250,000 Total assets S 1,165,100 S 1,066,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable S 35,000 S 98,000 4,000 29,000 5,100 25,000 265,000 460,000 Long-term liabilities: Notes payable 235,000 Stockholders' equity Common stock Retained earnings 400,000 300,000 375,000 Total liabilities and stockholders' equity S 1,165,100 S 1,066,000