Additional Information for 2018:

1. Purchase additional investment in stocks for $87,000.

2. Sell land costing $51,000 for $54,000, resulting in a $3,000 gain on sale of land.

3. Purchase $22,000 in equipment by borrowing $22,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $112,000.

5. Issue common stock for $52,000.

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)

"PLEASE use the catagories on the RIGHT to fill in. I need to know what to put into the blank boxes.!!!"

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 Net sales Gain on sale of land $ 2,520,000 3,000 Total revenues 2,523,000 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expensee $ 1,610,000 607,000 25,000 26,000 72,000 Total expenses 2,340,000 Net income $ 183,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent $223.280 165,960 88,000 137,000 6,240 72,800 148,000 4,120 Long-term assets 207,000 211,000 234,000 (131,000) Investments 120,000 262,000 212,000 (106,000) Equipment Accumulated depreciation Total assets $969,200 885,200 Liabilities and Stockholders' Equity Curent liabilities 31,000 $ Accounts payable Interest payable 90,000 3,200 25,000 4,400 21,800 249,000 372,000 Income tax payable Long-term liabilities Notes payable Stockholders' equity Common stock 227,000 320,000 220,000 Retained earnings 291,000 Total liabilities and stockholders' equity $ 969,200 885,200 Additional Information for 2018 1. Purchase additional investment in stocks for $87,000 2. Sell land costing $51,000 for $54,000, resulting in a $3,000 gain on sale of land 3. Purchase $22,000 in equipment by borrowing $22,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $112,000 5. Issue common stock for $52,000 Required Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2018 SELECT PROPER CATEGORY FROM THIS LIST PLEASE Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Decrease in accounts payable Decrease in accounts receivable Decrease in income tax payable Decrease in notes payable Decrease in prepaid rent Depreciation expense Gain (on sale of land) Increase in interest payable Increase in inventory Issue common stock Loss (on sale of land) Net income Net loss Payment of cash dividends Purchase equipment issuing a note payable Purchase investment in stock Purchase of equipment Sale of land Net cash flows from operating activities Cash Flows from Investing Activities Net 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