The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided. $2,440,000 9,000 2,449,000 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,570,000 Operating expenses 599,000 Depreciation expense 17,000 Interest expense 18,000 Income tax expense 64,000 Total expenses Net income 2,268,000 $ 181,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 114,560 69,600 136,000 3,040 $ 55,720 84,000 129,088 4.680 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current Habilitiest Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total 11abilities and stockholders equity 189,000 205,000 218,000 (119,000) $ 816,200 110.000 252,000 204,000 (182,000) $ 737,400 $ 27,000 3,600 29,600 $82,000 2,400 32,000 255,000 241,000 284,000 217.000 $ 816,200 240,000 140,000 $ 737,400 122 Additional Information for 2021: 1. Purchase additional investment in stocks for $79,000 2 Sell and costing $47000 for $56,000, resulting in a $9.000 gain on sale of land 3 Purchase 519.000 in equipment by Issuing a $14,000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $104,000 5. Issue common stock for $44.000 LOOK Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note (List cash outflows and any decrease in cash os negative amounts.) Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct 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 Net Income 181,000 Net cash flows from operating activities Cash Flows from Investing Activities 181000 Net cash flows from Investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0