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7. The income statement balance sheets, and additional Information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December

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7. 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, 2018 Not sales Gain on sale of land $ 2.430,000 6,500 2,436,500 Total revenues Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,565,000 598,000 16,000 17 000 63,000 Total expenses 2.259,000 Net income S 177,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 $ Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation 81,420 $ 68,700 134,500 2,980 25,740 83,000 128,000 4,560 198,000 208,500 216,000 (117,500) 120,000 255,000 203,000 (101,500) Total assets 792,600 $ 717,800 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders' equity Common stock Retained earnings 26,500 $ 3,400 30 200 81 000 2,300 32,500 242,000 255,000 273 000 204,500 230,000 130,000 Total liabilities and stockholders' equity 792,600 $ 717,800 Additional Informatie Additional Information for 2015 1. Patronat investment stocks for STB000 2 Genting 6.500 for $63,000 ting na $500 gain on sale of land Pac.com.co tong-form.note payable to the seller. No cash is exchanged in the transaction Der and pay a case of $100.000 common stock for $48000 Required on Pinterest of cathos using the worect method Ondose any conchantion in an accompanying role. (Lt cash outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS of Cash Yeter Ended Decenter, 2016 Alcome to the Net cash flows from operating activities Cash Flows from Investing Activities Nel cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note Noncash Activities Additional Information for 2018: 1. Purchase additional investment in stocks for $78,000 2. Sell and costing $46,500 for $53,000, resulting in a $6,500 gain on sale of land 3. Purchase $13,000 in equipment by issuing a $13,000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $103,000 5. Issue common stock for $43,000 Required: Prepare the statement of cash flows using the indirect method. Discose any noncash transactions in an accompanying note. (Liut cash outlo Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities

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