he 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					$	2,540,000
Gain on sale of land						4,000
Total revenues						2,544,000
Expenses:
Cost of goods sold	$	1,620,000
Operating expenses		609,000
Depreciation expense		27,000
Interest expense		28,000
Income tax expense		74,000
Total expenses						2,358,000
Net income					$	186,000

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	277,260			$	217,920
Accounts receivable		70,600				86,000
Inventory		151,000				139,000
Prepaid rent		4,240				6,480
Long-term assets:
Investments		199,000				110,000
Land		212,000				264,000
Equipment		238,000				214,000
Accumulated depreciation		(134,000	)			(107,000	)
Total assets	$	1,018,100			$	930,400
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	32,000			$	92,000
Interest payable		4,500				3,400
Income tax payable		22,600				26,000
Long-term liabilities:
Notes payable		253,000				229,000
Stockholders' equity:
Common stock		394,000				340,000
Retained earnings		312,000				240,000
Total liabilities and stockholders equity	$	1,018,100			$	930,400

Additional Information for 2021:

1. Purchase additional investment in stocks for $89,000.

2. Sell land costing $52,000 for $56,000, resulting in a $4,000 gain on sale of land.

3. Purchase $24,000 in equipment by issuing a $24,000 long-term note payable to the seller. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $114,000.

5. Issue common stock for $54,000.

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.)