The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Sthtement For the year ended December 31, 2021 Net sales $2,420,000 Gain on sale of land 6,000 Total revenues 2,426,000 Expenses: Cost of goods sold $1,560,000 Operating expenses 597,000 Depreciation expense 15,000 Interest expense 16,000 Income tax expense 62,000 Total expenses 2,250,000 Net income $ 176,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 84,280 67,800 133,000 2,920 $ 29,760 82,000 127,000 4,440 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: Notae navale 177,000 208,000 214,000 (116,000) $ 771,000 100,000 254,000 202,000 (101,000) $ 698,200 $ 26,000 3,200 30,800 $ 80,000 2,200 33,000 255 Ana 242 ana balance sneets December 31 2021 2020 $ 84,280 67,800 133,000 2,920 $ 29,760 82,000 127,000 4,440 177,000 208,000 214,000 (116,000) $ 771,000 100,000 254,000 202,000 (101,000) $ 698,200 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-tern 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 $ 26,000 3,200 30,800 $ 80,000 2,200 33,000 255,000 262,000 194,000 $ 771,000 243,000 220,000 120,000 $ 698,200 Additional Information for 2021: 1. Purchase additional investment in stocks for $77,000. 2. Sell land costing $46,000 for $52,000, resulting in a $6,000 gain on sale of land. 3. Purchase $12,000 in equipment by issuing a $12,000 long-term note payable to the seller. No cash is exchange 4. Declare and pay a cash dividend of $102,000. 5. Issue common stock for $42,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompar 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 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities