The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $ 2,540,000 4,000 2,544,000 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 $1,620,000 Operating expenses 609,000 Depreciation expense 27,000 Interest expense 28,000 Income tax expense 74,000 Total expenses Net income 2,358,000 186,000 $ VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 277, 260 70,600 151,000 4,240 $ 217,920 86,000 139,000 6,480 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 199,000 212,000 238,000 (134,000) $1,018, 100 110,000 264,000 214,000 (107,000) $ 930,400 $ 32,000 4,500 22,600 92,000 3,400 26,000 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 253,000 229,000 394,000 312,000 $1,018,100 340,000 240,000 $ 930,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $89,000. 2. Sell land costing $52,000 for $56,000, resulting in a $4,000 gain on sale of land. 3. Purchase $24,000 in equipment by issuing a $24,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $114,000. 5. Issue common stock for $54,000. 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.)