2 ints Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying no outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 eBook Print References Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Gain (on sale of land) Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Increase in interest payable Decrease in income tax payable Net cash flows from operating activities Cash Flows from Investing Activities Proceeds from sale of land Payment of cash dividends Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends Decrease in notes payable Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 195,000 2,600 (120,000) 235,000 $ 197,600 115,000 60,000 $ 60,000 0 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 6 points Net sales Gain on sale of land. eBook Print Total revenues Expensest Cost of goods sold Operating expenses Depreciation expense Interest expense. Income tax expense Total expenses Net incone $1,650,000 $2,600,000 7,000 2,607,000 615,000 33,000 34,000 80,000 2,412,000 $195,000 References VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $ 409,500 64,000 160,000 $ 343,800 80,000 145,000 4,600 7,200 205,000 110,000 215,000 270,000 250,000 220,000 (143,000) (110,000) $1,165,100 $1,066,000 $ 35,000 5,100 25,000 98,000 4,000 29,000 265,000 235,000 Stockholders' equitys Common stock 460,000 400,000 Retained earnings 375,000 Total liabilities and stockholders' equity $1,165,100 300,000 $1,066,000 Additional Information for 2021: 1. Purchase additional investment in stocks for $95,000. 2. Sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land. 3. Purchase $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $120,000 5. Issue common stock for $60,000