Problem 11-4B Prepare a statement of cash flows-indirect method.

The income statement, blanace sheets, and additional indormation dor Virtual Gaming Systems are provided.

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. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 $2,450,000 7,500 2,457,500 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense $1,575,000 600,000 18,000 19,000 65,000 Income tax expense 2,277,000 Total expenses 180,500 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 81,700 85,000 130,e00 4,800 $ 139,400 70,500 137,500 3,100 Accounts receivable Inventory Prepaid rent Long-term assets : Investments Land 180,e00 205,500 220, 000 (120,500) 100,000 253,000 205,000 (102,500) 757,000 Equipment Accumulated depreciation ces Total assets 835,500 Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities : Notes payable Stockholders' equity: $ 27,500 3,500 29,000 83,000 2,500 31,500 255,000 240,000 Common stock 295,000 225,500 250,000 150,000 $757,000 Retained earnings $ 835,500 Total liabilities and stockholders' equity Additional Information for 2021: 1. Purchase additional investment in stocks for $80,000. 2. Sell land costing $47,500 for $55,000, resulting in a $7,500 gain on sale of land. 3. Purchase $15,000 in equipment by issuing a $15,000 long-term note payable to the seller. No cash is exchanged in the transaction 4, Declare and pay a cash dividend of $105,000. 5. Issue common stock for $45,000. 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 Adjustments to reconcile net income to net cash flows from operating activities: VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities 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