The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $2,600,000 7,000 2,607,000 $1,650,000 615,000 33,000 34,000 80,000 2,412,000 $195,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 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: $409,500 64,000 $343,800 80,000 160,000 145,000 4,600 7,200 205,000 110,000 215,000 270,000 250,000 220,000 (143,000) (110,000) $1,165,100 $1,066,000 $ 35,000 5,100 $ 98,000 4,000 25,000 29,000 265,000 235,000 Common stock 460,000 480,000 Retained earnings 375,000 300,000 Total liabilities and stockholders' equity $1,165,100 $1,066,000 Additional Information for 2024: 1. Purchased additional investment in stocks for $95.000 Sold land for $62.000. The land originally was purchased for $55,000, resulting in a $7,000 gain being recorded at the time of the sale Purchased $30,000 in equipment by issuing a $30.000 long-term note payable to the seller. No cash was exchanged in the transaction Declared and paid a cash dividend of $120,000 Issued common stock for $60,000 VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 21, 2024 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Increase in accounts payable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Increase in interest payable Decrease in income tax payable Net cash flows from operating activities Cash Flows from Investing Activites Loss on sale of land) Punhase invest in stock Net cash flows from investing advies Cash Flows from Finanong Activites Payment of cash dividends sue common stock Net cash flows from tranong activit Cash at the beginning of the penod end of the period Noe Noncash Advies Purchasement by issuing a note payable $ 195.000 33.000 24.000 (15,000) 2.000 (03.000) 1.100 (4,000) 56,000 (95.000) 5 173.700 (40,000) 3 30.000 (120,000) 60.000 (30,000) 400.500 ' 400,500 $ 30.000