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 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land $1,580,000 601,000 19,000 20,000 $2,460,000 6,000 2,466,000 66,000 2,286,000 $ 180,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 134,540 71,400 $ 77,680 86,000 139,000 131,000 3,160 4,920 201,000 120,000 206,000 254,000 222,000 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 (122,000) $ 855,100 $ 28,000 3,700 206,000 (103,000) $ 776,600 $ 84,000 2,600 28,400 31,000 255,000 239,000 306,000 260,000 234,000 160,000 Total liabilities and stockholders' equity $ 855,100 $ 776,600