VIRTUAL GAMING SYSTEMS Income statements For the Years Ended Decenber 31 \begin{tabular}{lrr|} & \multicolumn{1}{c}{} & \\ Net sales & 2025 & 2024 \\ Cost of goods sold & $3,535,000 & $3,061,000 \\ Gross profit & 2,485,000 & 1,955,000 \\ \hline Expenses: & 1,050,000 & 1,106,000 \\ Operating expenses & 960,000 & 863,000 \\ Depreciation expense & 35,000 & 29,500 \\ Loss on sale of land & 0 & 8,500 \\ Interest expense & 20,500 & 17,500 \\ Income tax expense & 8,500 & 50,500 \\ Total expenses & 1,024,000 & 969,000 \\ Net income & 26,000 & 137,000 \\ \hline \end{tabular} VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Assets 20252024 Current assets: Cash Accounts receivable Inventory Prepaid rent $208,50082,500132,50014,500$191,00086,000110,00012,500$149,00065,000146,0006,600 Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets \begin{tabular}{rcr} 110,000 & 110,000 & \\ 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 Income tax payable 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.)