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Income statements and balance sheets data for Virtual Gaming Systems are provided below.

VIRTUAL GAMING SYSTEMS

Income Statements

For the Years Ended December $31$

$20252024$

Net sales $$3,475,000$ $$3,001,000$

Cost of goods sold $2,473,0001,943,000$

Gross profit $1,002,0001,058,000$

Expenses:

Operating expenses $948,000851,000$

Depreciation expense $23,00023,500$

Loss on sale of land $07,300$

Interest expense $14,50011,500$

Income tax expense $7,30044,500$

Total expenses $992,800937,800$

Net income $9,200120,200$

VIRTUAL GAMING SYSTEMS

Balance Sheets

December $31$

$202520242023$

Assets

Current assets:

Cash $$197,500$ $$179,000$ $$137,000$

Accounts receivable $71,50074,00053,000$

Inventory $121,50098,000128,000$

Prepaid rent $13,30011,3005,160$

Long$-$term assets:

Investment in bonds $98,00098,0000$

Land $293,000203,000233,000$

Equipment $293,000263,000203,000$

Less: Accumulated depreciation $(81,500)(58,500)(35,000)$

Total assets $$1,006,300$ $$867,800$ $$724,160$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$254,400$ $$59,000$ $$96,060$

Interest payable $6,9004,6002,300$

Income tax payable $11,30011,50013,300$

Long$-$term liabilities:

Notes payable $330,000278,000218,000$

Stockholders' equity:

Common stock $293,000293,000293,000$

Retained earnings $110,700221,700101,500$

Total liabilities and stockholders$$ equity $$1,006,300$ $$867,800$ $$724,160$

 

 

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.$)$