The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,595,000 604,000 22,000 23,000 $2,490,000 2,500 2,492,500 69,000 2,313,000 $ 179,500 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 178,760 74,100 143,500 $ 123,620 89,000 134,000 3,340 5,280 204,000 120,000 209,500 259,000 228,000 209,000 (104,500) Equipment Accumulated depreciation Total assets 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 (126,500) $ 914,700 $ 29,500 4,100 26,600 $ 835,400 $ 87,000 2,900 29,500 255,000 236,000 339,000 290,000 260,500 $ 914,700 190,000 $ 835,400