Additional Information for 2021: 1. Purchase additional investment in stocks for $93,000. 2. Sell land costing $54,000 for $60,000, resulting in a $6,000 gain on sale of land. 3. Purchase $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $118,000 5. Issue common stock for $58,000. 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, 2021 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to net cash flows from operating activities: $ 0 Net cash flows from operating activities Cash Flows from Investing Activities 0 Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0 Problem 11-4B Prepare a statement of cash flows-indirect method (L011-2, 11-3, 11-4, 11-5) 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 Net sales $2,580,000 Gain on sale of land 6,000 Total revenues 2,586,000 Expenses: Cost of goods sold $1,640,000 Operating expenses 613,000 Depreciation expense 31,000 Interest expense 32,000 Income tax expense 78,000 Total expenses 2,394,000 Net income $ 192,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 355, 520 66,200 157,000 4,480 $ 291,840 82,000 143,000 6,960 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 Stockholders' equity! Common stock Retained earnings Total liabilities and stockholders' equity 213,000 214,000 246,000 (140,000) $1,116,200 120,000 268,000 218,000 (109,000) $1,020,800 $ 34,000 5,000 24, 200 96,000 3,800 28,000 261,000 233,000 438,000 354,000 $1,116,200 380,000 280,000 $1,020,800 Additional Information for 2021: 1. Purchase additional investment in stocks for $93,000. 2. Sell land costing $54,000 for $60,000, resulting in a $6,000 gain on sale of land. 3. Purchase $28,000 in equipment by issuing a $28,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $118,000 5. Issue common stock for $58,000
