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, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,630,000 611,000 29,000 30,000 $2,560,000 5,000 2,565,000 76,000 2,376,000 $ 189,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $ 331,240 68,400 154,000 $ 269,880 84,000 141,000 4,360 6,720 191,000 100,000 213,000 266,000 242,000 (137,000) $1,067,000 $ 975,600 216,000 (108,000) $ 33,000 4,600 $ 94,000 3,600