The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided.

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2012 Revenues $ 2,700,000 Gain on sale of land 2,200 Total revenues 2,702,200 Expenses: Cost of goods sold $ 1,610,000 Operating expenses 607,000 Depreciation expense 23,700 Interest expense 24,500 Income tax expense 70,100 Total expenses 2,335,300 Net income $ 366,900

VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2012 2011 Assets Current assets: Cash $ 371,900 $ 146,000 Accounts receivable 77,000 92,000 Inventory 151,000 142,000 Prepaid rent 4,900 6,300 Long-term assets: Investments 189,000 130,000 Land 214,000 260,000 Equipment 234,000 213,000 Accumulated depreciation (133,700) (110,000) Total assets $ 1,108,100 $ 879,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 34,000 $ 95,000 Interest payable 4,900 3,000 Income tax payable 22,000 26,000 Long-term liabilities: Notes payable 251,000 230,000 Stockholders' equity: Common stock 264,000 210,000 Retained earnings 532,200 315,300 Total liabilities and stockholders' equity $ 1,108,100 $ 879,300

Additional Information for 2012: 1. Purchase additional investment in stocks for $59,000. 2. Sell land costing $46,000 for $48,200, resulting in a $2,200 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.

Required:

Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the year ended December 31, 2012
Cash Flows from Operating Activities
(Click to select)Sale of landCash paid to employeesCash paid for income taxesCash paid for operating expensesCash paid for interestCash paid to suppliersCash received from customers	$
(Click to select)Cash paid to suppliersCash paid for income taxesCash paid to employeesCash paid for operating expensesCash paid for interestCash received from customersSale of land
(Click to select)Cash paid to suppliersCash paid to employeesSale of landCash paid for interestCash paid for income taxesCash received from customersCash paid for operating expenses
(Click to select)Cash received from customersCash paid for interestCash paid to suppliersCash paid to employeesSale of landCash paid for operating expensesCash paid for income taxes
(Click to select)Sale of landCash paid to employeesCash paid to suppliersCash paid for income taxesCash received from customersCash paid for interestCash paid for operating expenses
Net cash flows from operating activities		$
Cash Flows from Investing Activities
(Click to select)Purchase investment in bondsCash received from customersCash paid for income taxesCash paid for interestSale of landCash paid to suppliersPurchase investment in stock
(Click to select)Cash paid for interestSale of landPurchase investment in stockPurchase investment in bondsCash paid to suppliersCash paid for income taxesCash received from customers
Net cash flows from investing activities
Cash Flows from Financing Activities
(Click to select)Purchase investment in bondsCash paid for operating expensesCash paid for interest Payment of cash dividendsPurchase investment in stockPurchase of equipmentIssue common stock
(Click to select)Purchase of equipmentPurchase investment in stockPayment of cash dividendsCash paid for operating expensesPurchase investment in bondsIssue common stockCash paid for interest
Net cash flows from financing activities
(Click to select)Net increase in cashNet decrease in cash
(Click to select)Cash at the beginning of the periodCash at the end of the period
(Click to select)Cash at the beginning of the periodCash at the end of the period		$
Noncash Activities
(Click to select)Cash paid to suppliersCash received from customersCash paid for income taxesCash paid for operating expensesPurchase equipment issuing a note payableCash paid for interestPurchase investment in bonds		$