Problem 11-4B (Algo) Prepare a statement of cash flows-indirect method (LO11-2, 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, 2024 Net sales Gain on sale of land $2,600,000 7,000 2,607,000 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,650,000 615,000 33,000 34,000 80,000 2,412,000 $195,000 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $409,500 64,000 $343,800 80,000 160,000 145,000 4,600 7,200 205,000 110,000 215,000 270,000 250,000 220,000 (143,000) (110,000) $1,165,100 $1,066,000 $35,000 $98,000 Interest payable 5,100 4,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 25,000 29,000 265,000 235,000 Common stock 460,000 400,000 Retained earnings 375,000 300,000 Total liabilities and stockholders' equity $1,165,100 $1,066,000 Additional Information for 2024: 1. Purchased additional investment in stocks for $95,000. 2. Sold land for $62,000. The land originally was purchased for $55,000, resulting in a $7,000 gain being recorded at the time of the sale. 3. Purchased $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $120,000. 5. Issued common stock for $60,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying not (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) Cash Flows from Operating Activities: VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: 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