Income statement and balance sheet data for Virtual Gaming Systems are provided below.
Income statement and balance sheet data for Virtual Gaming Systems are provided below.?? VIRTUAL GAMING SYSTEMS?Income Statement?For the year ended December 31?? ? 2013? 2012?? Sales revenue?$3,510,000 ?$3,036,000 ?? Cost of goods sold?2,480,000 ?1,950,000 ?? ???? Gross profit?1,030,000 ?1,086,000 ?? Expenses:? ? ?? Operating expenses?955,000 ?858,000 ?? Depreciation expense?30,000 ?27,000 ?? Loss on sale of land?0 ?8,000 ?? Interest expense?18,000 ?15,000 ?? Income tax expense?8,000 ?48,000 ?? ???? Total expenses?1,011,000 ?956,000 ?? ???? Net income?$ 19,000 ?$ 130,000 ?? ? ? ???? VIRTUAL GAMING SYSTEMS?Balance Sheet?December 31?? ? 2013? 2012? 2011?? Assets? ? ? ?? Current assets:? ? ? ?? Cash?$ 201,000 ?$186,000 ?$144,000 ?? Accounts receivable?75,000 ?81,000 ?60,000 ?? Inventory?125,000 ?105,000 ?135,000 ?? Prepaid rent?14,000 ?12,000 ?6,000 ?? Long-term assets:? ? ? ?? Investment in bonds?105,000 ?105,000 ?0 ?? Land?300,000 ?210,000 ?240,000 ?? Equipment?300,000 ?270,000 ?210,000 ?? Less: Accumulated depreciation?(99,000) ?(69,000) ?(42,000) ?? ????? Total assets?$1,021,000 ?$900,000 ?$753,000 ?? ? ? ? ?? Liabilities and Stockholders’ Equity? ? ? ?? Current liabilities:? ? ? ?? Accounts payable?$ 78,000 ?$ 66,000 ?$ 81,000 ?? Interest payable?9,000 ?6,000 ?3,000 ?? Income tax payable?12,000 ?15,000 ?14,000 ?? Long-term liabilities:? ? ? ?? Notes payable?400,000 ?285,000 ?225,000 ?? Stockholders’ equity:? ? ? ?? Common stock?300,000 ?300,000 ?300,000 ?? Retained earnings?222,000 ?228,000 ?130,000 ?? ????? Total liabilities and stockholders’ equity?$1,021,000 ?$900,000 ?$753,000 ?? ? ? ? ????? ? 1. value:?5.00 points Required:??1.?Calculate the following risk ratios for 2012 and…
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