Required information Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 12-4) [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 Net sales $3, 535, 000 $3, 061,000 Cost of goods sold 2, 485, 000 1, 955, 000 Gross profit 1, 050, 000 1, 106, 000 Expenses : Operating expenses 960, 000 863,000 Depreciation expense 35,000 29,500 Loss on sale of land 8,500 Interest expense 20, 500 17,500 Income tax expense 8, 500 50,500 Total expenses 1, 024, 000 969, 090 Net income $ 26, 000 $ 137,000VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2622 2621 2626 Assets Current assets: Cash $ 268,566 $191,666 $149,666 Accounts receivable 82,566 86,666 65,666 Inventory 132,566 116,666 146,666 Prepaid rent 14,566 12,566 6,666 Long-term assets: Investment in bonds 116,666 116,666 6 Land 365,666 215,666 245,666 Equipment 365,666 275,666 215,666 Less: Accumulated depreciation (111,566) (76,566) (47,666) Total assets $1,646,566 $923,666 $773,666 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 147,666 $ 71,666 $125,166 Interest payable 16,566 7,666 3,566 Income tax payable 12,566 17,566 14,566 Long-term liabilities: Notes payable 456,666 296,666 236,666 Stockholders' equity: Common stock 365,666 365,666 365,666 Retained earnings 121,566 232,566 95,566 Total liabilities and stockholders' equity $1,646,566 $923,666 $773,666 Problem 12-6A Part 1 Required: 1. Calculate the following risk ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio Problem 12-6A Part 2 2. Calculate the following profitability ratios for 2021 and 2022: (Round your answers to 1 decimal place.) Gross prot ratio Return on assets % Prot margin Asset turnover