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

2,500

Totalrevenues

2,702,500

Expenses:

Costof goods sold

$ 1,660,000

Operatingexpenses

607,000

Depreciationexpense

24,000

Interestexpense

24,500

Incometax expense

70,700

Totalexpenses

2,386,200

Net income

$

316,300

VIRTUAL GAMING SYSTEMS

Balance Sheet

December 31

2012

2011

Assets

Current assets:

Cash

$ 346,500

$ 148,000

Accountsreceivable

78,000

100,000

Inventory

146,000

138,000

Prepaidrent

4,700

6,600

Long-term assets:

Investments

189,000

140,000

Land

216,000

270,000

Equipment

231,000

210,000

Accumulateddepreciation

(130,000)

(106,000)

Totalassets

$ 1,081,200

$ 906,600

Liabilities and Stockholders' Equity

Current liabilities:

Accountspayable

$34,000

$94,000

Interestpayable

4,800

2,500

Incometax payable

21,000

30,000

Long-term liabilities:

Notespayable

254,000

233,000

Stockholders' equity:

Commonstock

274,000

220,000

Retainedearnings

493,400

327,100

Totalliabilities and stockholders' equity

$ 1,081,200

$ 906,600

Additional Information for 2012:

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.

Please prepare statement of cash flows and answer 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 activities?What is the net cash flows from noncash activities?