The following income statement and balance sheet for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS...

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The following income statement and balance sheet for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015 Net sales $3,016,000 1,946,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land 1,070,000 $854,000 25,000 7,600 13,000 44,000 Interest expense Income tax expense Total expenses 943,600 Net income $ 126,400 VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2015 2014 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $182,000 77,000 101,000 11,600 $140,000 56,000 131,000 5,520 101,000 206,000 266,000 (63,000) Land Equipment Less: Accumulated depreciation 236,000 206,000 (38,000) Total assets $881,600 $736,520 Liabilities and Stockholders' Equity Current liabilities: $ 77,000 2,600 13,600 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $62,000 5,200 13,000 281,000 221,000 296,000 224,400 296,000 126,320 Total liabilities and stockholders' equity $881,600 $736,520 Required: Assuming that all sales were on account, calculate the following risk ratios for 2015. (Use 365 days a year. Round your intermediate and final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 to 1 % times The following income statement and balance sheet for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015 Net sales $3,016,000 1,946,000 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land 1,070,000 $854,000 25,000 7,600 13,000 44,000 Interest expense Income tax expense Total expenses 943,600 Net income $ 126,400 VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2015 2014 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $182,000 77,000 101,000 11,600 $140,000 56,000 131,000 5,520 101,000 206,000 266,000 (63,000) Land Equipment Less: Accumulated depreciation 236,000 206,000 (38,000) Total assets $881,600 $736,520 Liabilities and Stockholders' Equity Current liabilities: $ 77,000 2,600 13,600 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $62,000 5,200 13,000 281,000 221,000 296,000 224,400 296,000 126,320 Total liabilities and stockholders' equity $881,600 $736,520 Required: Assuming that all sales were on account, calculate the following risk ratios for 2015. (Use 365 days a year. Round your intermediate and final answers to 1 decimal place.) Risk Ratios 1. Receivables turnover ratio 2. Average collection period 3. Inventory turnover ratio 4. Average days in inventory 5. Current ratio 6. Acid-test ratio 7. Debt to equity ratio 8. Times interest earned ratio times days times days to 1 to 1 % times

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1 Receiable turn over ratio Net credit sales Average accounts receiv... View the full answer