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, 2015 Net sales $ 2,520,000 Gain on sale of land 3,000 Total revenues 2,523,000 Expenses: Cost of goods sold $ 1,610,000 Operating expenses 607,000 Depreciation expense 25,000 Interest expense 26,000 Income tax expense 72,000 Total expenses 2,340,000 Net income $ 183,000 VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2015 2014 Assets Current assets: Cash $ 223,280 $ 165,960 Accounts receivable 72,800 88,000 Inventory 148,000 137,000 Prepaid rent 4,120 6,240 Long-term assets: Investments 207,000 120,000 Land 211,000 262,000 Equipment 234,000 212,000 Accumulated depreciation (131,000) (106,000) Total assets $ 969,200 $ 885,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 31,000 $ 90,000 Interest payable 4,400 3,200 Income tax payable 21,800 25,000 Long-term liabilities: Notes payable 249,000 227,000 Stockholders' equity: Common stock 372,000 320,000 Retained earnings 291,000 220,000 Total liabilities and stockholders equity $ 969,200 $ 885,200 Additional Information for 2015: 1. Purchase additional investment in stocks for $87,000. 2. Sell land costing $51,000 for $54,000, resulting in a $3,000 gain on sale of land. 3. Purchase $22,000 in equipment by borrowing $22,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $112,000. 5. Issue common stock for $52,000. 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.)