VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales $3,016,000 Cost of goods sold 1,946,000 Gross profit 1,070,000 Expenses: Operating expenses $854,000 Depreciation expense 25,000 Loss on sale of land Interest expense 13,000 Income tax expense 44,000 Total expenses 943,600 Net income $ 126,400 7.600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $182,000 77,000 101,000 11,600 $140,000 56,090 131,000 5,520 101,000 206,000 266,000 (63,000) $881,600 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholdersi equity 8 236,000 206,000 (38,000) $736,520 $ 62,000 5,200 13,000 $ 77,000 2,600 13,600 281,000 221,000 296,000 224.400 $881,600 296,000 126,320 $736,520 Required: Assuming that all sales were on account, calculate the following risk ratios for 2021. (Use 365 days a year. Round your 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 ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 to 1 % times