VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2018 Net sales Cost of goods sold $3,086.000 1,960,000 Gross profit 1,126,000 Expenses Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $868,000 32,000 9,000 20,000 58,000 Total expenses 987,000 Net income $ 139,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent $196,000 91,000 115.000 13,000 $154,000 70,000 145,000 7,200 Long-term assets Investment in bonds Land Equipment Less: Accumulated depreciation 115,000 220.000 280,000 (84.000) 250,000 220,000 (52.000) Total assets $946,000 $794,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $76,000 8,000 20,000 $ 91,000 4,000 15,000 Long-term liabilities Notes payable 295,000 235,000 Stockholders' equity: Common stochk Retained earnings 310,000 237,000 310,000 139,200 Total liabilities and stockholders' equity $946,000 $794,200 Required: Assuming that all sales were on account, calculate the following risk ratios for 2018. (Use 365 days a year Round your intermediate calculations and final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current rati 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 times