VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income 2022 $3,525,000 2021 $3,051,000 2,483,000 1,953,000 1,042,000 1,098,000 958,000 861,000 33,000 28,500 0 8,300 19,500 16,500 8,300 49,500 1,018,800 963,800 $ 23,200 $ 134,200 Assets Current assets: VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2021 2020 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: $ 205,500 $189,000 $147,000 79,500 84,000 63,000 129,500 108,000 138,000 14,300 12,300 6,360 108,000 108,000 0 303,000 213,000 243,000 303,000 273,000 213,000 (106,500) (73,500) (45,000) $1,036,300 $913,800 $765,360 $ 161,400 $ 69,000 $120,260 9,900 12,300 6,600 16,500 3,300 14,300 430,000 288,000 228,000 Common stock 303,000 303,000 303,000 Retained earnings 119,700 230,700 Total liabilities and stockholders' equity $1,036,300 96,500 $913,800 $765,360 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2021 2022 times times times times to 1 to 1 % %