10 4 points Net sales VIRTUAL GAMING SYSTEMS Income Stateeent For the Year Ended December 31, 2024 Gain on sale of land Total revenues Expenses: Cost of goods sold, Operating expenses Depreciation expense Interest expense Income tax expense Total expenses eBook Net income $2,600,000 7,000 2,607,000 51,650,000 615,000 33,000 34,000 00,000 2,412,000 $195,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-tere assets: Investments i Land 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 $409,500 64,000 160,000 4,500 $343,800 50,000 145,000 7,200 205,000 110,000 215,000 270,000 250,000 220,000 (143,000) (110,000) $1,066,000 $1,165,100 $ 35,000 5,100 550,000 25,000 4,000 29,000 265,000 235,000 460,000 400,000 375,000 300,000 $1,165,100 $1,066,000 10 points Additional Information for 2024 ebook 1. Purchased additional investment in stocks for $95,000 2. Sold land for $62.000. The land originally was purchased for $55,000, resulting in a $7,000 gain being recorded at the time of the sale 3. Purchased $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash was exchanged in the transaction 4. Declared and paid a cash dividend of $120,000 5. Issued common stock for $60,000 Book (Amounts to be deducted, cash outflows, and any decrease in cash should be Indicated with 6 MINU Cash Flows from Operating Activities Net income VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: Decrease in accounts payable Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in interest payable Decrease in income tax payable Depreciation expense S 195.000 63.000 16,000 (15,000) 2,000 (1,100) 4,000 33,000 Net cash flows from operating activities Cash Flows from Investing Activities: Gain (on sale of land) Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends Issue common stock (7,000) S (120,000) 60.000 $ Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment by issuing a note payable $ 297,500 (7,000) (80,000) 409,500 $ 400,500 S 30,000