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 $$2,460,000$

Gain on sale of land $6,000$

Total revenues $2,466,000$

Expenses:

Cost of goods sold $$1,580,000$

Operating expenses $601,000$

Depreciation expense $19,000$

Interest expense $20,000$

Income tax expense $66,000$

Total expenses $2,286,000$

Net income $$180,000$

VIRTUAL GAMING SYSTEMS

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$134,540$ $$77,680$

Accounts receivable $71,40086,000$

Inventory $139,000131,000$

Prepaid rent $3,1604,920$

Long$-$term assets:

Investments $201,000120,000$

Land $206,000254,000$

Equipment $222,000206,000$

Accumulated depreciation $(122,000)(103,000)$

Total assets $$855,100$ $$776,600$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$28,000$ $$84,000$

Interest payable $3,7002,600$

Income tax payable $28,40031,000$

Long$-$term liabilities:

Notes payable $255,000239,000$

Stockholders' equity:

Common stock $306,000260,000$

Retained earnings $234,000160,000$

Total liabilities and stockholders$$ equity $$855,100$ $$776,600$

Additional Information for $2024$:

Purchased additional investment in stocks for $$81,000.$

Sold land for $$54,000.$ The land originally was purchased for $$48,000,$ resulting in a $$6,000$ gain being recorded at the time of the sale.

Purchased $$16,000$ in equipment by issuing a $$16,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$106,000.$

Issued common stock for $$46,000.$