VIRTUAL GAMING SYSTEMS [Income Statement for the year ending  December 31, 2021 Net sales   2,991,000 Cost of goods sold   1,941,000 Gross profit   1,050,000 Expenses: Operating expenses 849,000   Depreciation expense 22,500   Loss on sale of land 7,100   Interest expense 10,500   Income tax expense 39,000   Total expenses   928,100 Net income   121,900   VIRTUAL GAMING SYSTEMS Balance Sheets December 31   2021 2020 Current assets: Cash 177,000 135,000 Accounts receivable 72,000 51,000 Inventory 96,000 126,000 Prepaid rent 11,100 4,920 Long-term assets: Investment in bonds 96,000 0 Land 201,000 231,000 Equipment 261,000 201,000 Less: Accum Deprec (55,500) (33,000) Total assets 858,600 715,920 Liabilities and Stockholders' Equity Current liabilities:     Accounts payable  57,000 72,000 Interest payable 4,200 2,100 Income tax payable 10,500 13,100 Long-term liabilities:     Notes payable 276,000 216,000 Stockholders' equity:     Common stock 291,000 291,000 Retained earnings 219,900 121,720 Total liabilities &stockholders’ equity 858,600 715,920 Question 6: Assuming that all sales were on account, calculate the following risk ratios for 2021 using the data in the tables above. (Use 365 days a year & round answers to 1 decimal place) 6a: Receivables turnover ratio 6b: Average Collection Period 6c: Inventory Turnover Ratio 6d: Average Days in Inventory: 6e: Current Ratio: 6f: Acid-test ratio: 6g: Debt to Equity Ratio:

Question

Question 4: [Please see attached screenshot and answer all questions]

Question 5: [Please see screenshot and answer all questions]

VIRTUAL GAMING SYSTEMS [Income Statement for the year ending  December 31, 2021
Net sales   2,991,000
Cost of goods sold   1,941,000
Gross profit   1,050,000
Expenses:
Operating expenses 849,000  
Depreciation expense 22,500  
Loss on sale of land 7,100  
Interest expense 10,500  
Income tax expense 39,000  
Total expenses   928,100
Net income   121,900

 

VIRTUAL GAMING SYSTEMS Balance Sheets
December 31
  2021 2020
Current assets:
Cash 177,000 135,000
Accounts receivable 72,000 51,000
Inventory 96,000 126,000
Prepaid rent 11,100 4,920
Long-term assets:
Investment in bonds 96,000 0
Land 201,000 231,000
Equipment 261,000 201,000
Less: Accum Deprec (55,500) (33,000)
Total assets 858,600 715,920
Liabilities and Stockholders' Equity
Current liabilities:    
Accounts payable  57,000 72,000
Interest payable 4,200 2,100
Income tax payable 10,500 13,100
Long-term liabilities:    
Notes payable 276,000 216,000
Stockholders' equity:    
Common stock 291,000 291,000
Retained earnings 219,900 121,720
Total liabilities &stockholders’ equity 858,600 715,920

Question 6: Assuming that all sales were on account, calculate the following risk ratios for 2021 using the data in the tables above. (Use 365 days a year & round answers to 1 decimal place)

6a: Receivables turnover ratio
6b: Average Collection Period
6c: Inventory Turnover Ratio
6d: Average Days in Inventory:
6e: Current Ratio:
6f: Acid-test ratio:
6g: Debt to Equity Ratio:

 

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