QUESTION 51 The income statement, balance sheet, and additional nformation for Vistual Gaming Systems are provided Revenues Gain on sale of land 2,700,000 2,500 Total revenues 2.702,500 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense $ 1,660,000 607,000 24,000 24.500 70,700 Income tax expense Total expenses 2,386,200 $ 316,300 Net income VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2019 2020 Assets Current assets: $ 148,000 100,000 138,000 6,600 $ 346,500 78,000 146,000 4,700 Cash Accounts receivable Inventory Prepaid rent land penses of Operaing expensen 607.000 24,000 24,500 70. Interest expose Income tax expense Total expenses Net income s 316,300 VIRTUAL G MNGS-TE Balance Sheet December 31 2020 2019 Assets Current assets: Cash Accounts receivable $ 346,500 78,000 46,000 4.700 148,000 100,000 138,000 Inventory Prepaid rent Long-term assets: Investments 6,600 140,000 270,000 210,000 (106,000) 189,000 216,000 231,000 Land Equipment Accumulated depreciation (130,000) 906,600 $1,081,200 Total assets Liabilities and Stockholders' Equity Current liabilities $ 94,000 2,500 30,000 34,000 4,800 21,000 Accounts payable Interest payable Income tax payable Long-term liabilities 233,000 254,000 Notes payable Stockholders' equity: Assets Cash 3 346 500 Inventory Prepaid rent Long term assets Investments 146,000 4,700 138 000 189,00 216,000 231,0000 140,000 270,000 210,000 (106,000) Land Equipment Accumulated depreciation (130,000) Total assets 1,081,200 906,600 Liabilities and Stockholders' Equity Current liabilities Accounts payable 34,000 4,800 21,000 94 ,000 Interest payable 2,500 Income tax payabke Notes payable Common stock 30,000 233,000 220,000 Long-term liabilities 254,000 Stockholders' equity 274,000 493,400 327,100 Retained earnings $ 906,600 $1,081,200 Total liabilities and stockholders' equity Additional Information for 2020 1. Purchase additional investment in stocks for $49,000 2. Sell land costing $54,000 for $56,500, resulting in a $2,500 gain on sale of land 3 Purchase $21,000 in equipment by borrowing $21,000 with a note payable due in three years. No cash is exchanged in the transaction 4 Declare and pay a cash dividend of $150,000 5. Issue common stock for $54,000 IMG_6826.jpg Window Help xpenses 607,000 Open 24,500 Interest expse 2,386,200 Net income Balance Sheet December 31 Assets Current assets S 346,500 78,000 146,000 4.700 Cash Accounts receivable Inventory Prepaid rent $148,000 100,000 138,000 6,600 Long-term assets 189,000 216,00 231,000 140,000 270,000 210,000 (106,000) Investments Land Equipment Accumulated depreciation (130,000) Total assets 1,081,200 S906,600 Liabilities and Stockholders Equity Current liabilities: S 34,000 4,800 21,000 S 94,000 2,500 30,000 Accounts payable Interest payable Income tax payable Long-term liabilities: 233,000 Notes payable 254,000 Stockholders' equity 1,000 130,00D 10 106 O00O Accumubatext deprectation Iotal assats 1 .08 1 .200 Labilites and Stockholders' Equity ble Accounts payal 34 000 21,000 254,000 274,000 4,000 30,D00 233,000 220,000 torest payablo Income tax payable Notos payablo Common stock 327.100 $ 1,001200111190ER01 493,400 etained Totul liabilitios and stockholders, oquity Additional Information for 2020 1. Purchase additional investment in stocks for $49.0o0 2. Sell land costing $54,000 for $56,500, rosulting in a 52,500 gain on sale of land in equipment by borrowing $21,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $150,000 5. Issue common stock for $54,000 Please prepare statement of cash flows and answor the following questions What is the net cash flows from operating activities? What is the net cash flows from investing activities? What is the net cash flows from financing activitios? What is the net cash flows from noncash activities? The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided Income S Revonues Gain on sale of land 2,roO,000 2,500 Total revenues 2.702.500 Expenses Cost of goods sold Operating expenses $ 1,660,000 607,000 24,000 24,500 70,700 Depreciation expense interest expense Income tax expense 2,386,200 Total expenses $ 316,300 Net income VIRTUAL GAMING SYSTEMS Balance Sheet