The Income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,520,000 3,000 2,523,000 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 $1,610,000 operating expenses 607,000 Depreciation expense 25,000 Interest expense 26,000 Income tax expense 72,000 Total expenses Net income 2,340,000 $ 183,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 223,280 72,800 148,000 4, 120 $ 165,960 88,000 137,000 6, 240 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 207,000 211, 000 234,000 (131, 000) $ 969,200 120,000 262,000 212,000 (106,000) $ 885,200 $ 31,000 4,400 21,800 90,000 3,200 25,000 249,000 227,000 372,000 291,000 $ 969,200 320,000 220,000 $ 885,200 Additional Information for 2021: 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 issuing a $22,000 long-term note payable to the seller. 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 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.)