Problem 11-4B 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. $2,420,000 6. 2,426, eee 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 $1,560,000 Operating expenses 597,000 Depreciation expense 15,00 Interest expense 16,00 Income tax expense 62.ee Total expenses Net income 2,250, eee $ 176. eee VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ $ 84,288 67,800 133,00 2,920 29,760 82,eee 127, eee 4,440 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 177,000 208,209 214,000 (116,000) $ 771,000 100,000 254, eee 202, eee (191,eee) $ 698, 200 $ $ 26,eee 3,200 30,800 80,000 2,202 33, eee 255,000 243, eee 262, eee 194, eee $771, eee 220, eee 120,000 $ 698,280 Additional Information for 2021: 1. Purchase additional Investment In stocks for $77,000. 2. Sell land costing $46,000 for $52,000, resulting in a $6,000 gain on sale of land. 3. Purchase $12,000 in equipment by Issuing a $12,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $102,000. 5. Issue common stock for $42,000 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: 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