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VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit 20253,535,0002,485,0001,050,0002024$3,061,0001,955,0001,106,000 Expenses: Operating expenses Depreciation expense
VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit 20253,535,0002,485,0001,050,0002024$3,061,0001,955,0001,106,000 Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income \begin{tabular}{rr} 960,000 & 863,000 \\ 35,000 & 29,500 \\ 0 & 8,500 \\ 20,500 & 17,500 \\ 8,500 & 50,500 \\ \hline 1,024,000 & 969,000 \\ \hline 26,000 & 137,000 \\ \hline \end{tabular} VIRTUAL GAMING SYSTEMS Balance Sheets December 31 20252024 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $208,50082,500132,50014,500$191,00086,000110,00012,500$149,00065,000140,0006,600 Long-term assets : Investment in bonds Land Equipment Less: Accumulated depreciation Total assets \begin{tabular}{rrr} 110,000 & 110,000 & 0 \\ 305,000 & 215,000 & 245,000 \\ 305,000 & 275,000 & 215,000 \\ (111,500) & (76,500) & (47,000) \\ \hline$1,046,500 & $923,000 & $773,600 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Incone tax payable $147,00010,50012,500$71,0007,00017,500$125,1003,50014,500 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025 ; (Round your answers to 1 decimal place.)
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