external_browser=0&aunchUrlhttps%253A%252F%252F Upgrade Your Acco. Restriction enrl pop... Cryptocurrency Pric. Download Wizard Question 6 - Conce... dit for Additional work in Cash Flows for Chapter... i Saved Problem 11-4B Prepare a statement of cash flows-indirect method (LO11-2, 11-3, The income statement, balance sheets, and additional information for Virtual Gaming Systems are provic $2,530,000 3,500 2,533,500 VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,615,000 Operating expenses 608,888 Depreciation expense 26,000 Interest expense 27,000 Income tax expense 73,088 Total expenses Net income 2,349,000 $184,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2821 2828 $ 265, 120 71,700 149,500 4,180 $ 206,940 87,800 138,000 6,360 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: Artela 188, eee 211,580 236,880 (132,500) $ 993,500 100,000 263,800 213, eee (106,500) $ 987,800 1 01 000 Balance Sheets December 31 2021 2020 $ 265,120 71,700 149,500 4,180 $. 206,940 87,000 138,000 6,360 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 188,000 211,500 236,000 (132,500) $ 993,500 100,000 263,000 213,000 (106,500) $ 907,800 $ 31,500 4,300 22,200 $ 91,800 3,300 25,500 251 , . 228 , ; 383,000 301,500 $ 993,500 330,eee 230,000 $ 907,800 Additional Information for 2021: 1. Purchase additional investment in stocks for $88,000. 2. Sell land costing $51,500 for $55,000, resulting in a $3,500 gain on sale of land. 3. Purchase $23,000 in equipment by Issuing a $23,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $113,000 5. Issue common stock for $53.000. Required: Prepare the statement of cash flows using the Indirect method. Disclose any noncash transactions in an accompanying note outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS S 184,500 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: Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Increase in interest payable Decrease in income tax payable Depreciation expense Gain (on sale of land) $ 184,500 Net cash flows from operating activities Cash Flows from Investing Activities Purchase investment in stock Proceeds from sale of land + 0 Net cash flows from investing activities Cash Flows from Financing Activities Issue common stock Payment of cash dividends 0 Net cash flows from financing activities Net increase in cash Cach at the hani nina of the norid itional work in Cash Flows for Chapter... i Soved Decrease in accounts payable Increase in interest payable Decrease in income tax payable Depreciation expense Gain (on sale of land) $ 184,500 Net cash flows from operating activities ash Flows from Investing Activities Purchase investment in stock Proceeds from sale of land 0 Net cash flows from investing activities Cash Flows from Financing Activities Issue common stock Payment of cash dividends 0 $ 0 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 Purchase equipment issuing a note payable