VIRTUAL GAMING SYSTEMS Income Statements For the year ended December 31 2019 2018 Net sales $3,495,000 $3,021,000 1,947,000 Cost of goods sold 2,477,000 1018,000 1074,000 Gross profit Expenses: 855,000 25,500 7,700 13,500 46,500 Operating expenses Depreclation expense Loss on sale of land Interest expense Income tax expense 952,000 27000 0 16,500 7,700 Total expenses 1,003,200 948,200 $125,800 Net Income $ 14,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2019 2018 2017 Assets Current assets: $ 199,500 73,500 123,500 13,700 $183,000 78,000 02,000 11,700 Cash Accounts recelvable Inventory Prepald rent $141,000 57,000 132,000 5,640 Long-term assets Investment In bonds Land 102,000 297,000 102,000 207,000 0 237,000 207,000 (39,000) 297,000 (91,500) 267,000 (64,500) Equlpment Less: Accumulated depreclation $886,200 $740,640 Total assets $1,014,700 Liabilities and Stockholders' Equity Current llablities: $ 213,600 8,100 11,700 $105,740 2,700 13,700 $63,000 5,400 13,500 Accounts payable Interest payable Income tax payable Long-term liablities: 370,000 Notes payable 282,000 222,000 Stockholders' equity: 297,000 114,300 297,000 225,300 297,000 99,500 Common stock Retalned earnings $1,014,700 $886,200 $740,640 Total liablities and stockholders' equity Required 1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.) 2018 2019 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio times times to 1 times times to 1 2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.) 2018 2019 Gross profit ratio Return on assets Profit margin Asset turnover times times