The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided $2,430,000 6,500 2,436,500 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 $1,565,000 Operating expenses 598,000 Depreciation expense 16,000 Interest expense 17,000 Income tax expense 6),600 Total expenses Net Income 2,259,000 $177,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 11,420 68,700 134,500 2.950 $ 25,740 83,000 128,000 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 liablities: Notes payable Stockholders' equity Co stock 198,000 206,500 216,000 117.500 $ 792,600 120,000 255,000 203,000 (101 500) $ 717,800 $ 26,500 3,400 35,200 $ 1.200 2,300 32,500 255,000 273,000 230,000 LULUI Common stock Retained earnings Total liabilities and stockholders' equity 273,000 284,500 $ 792,660 230,000 130,000 $ 717,869 Additional Information for 2021: 1. Purchase additional investment in stocks for $78,000 2. Sell land costing $46,500 for $53.000, resulting in a $6,500 gain on sale of land, 3. Purchase $13,000 in equipment by Issuing a $13,000 long-term note payable to the seller No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $103.000. 5. Issue common stock for $43,000. 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 cosh as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net Income Depreciation expense Gain (on sale of land) Decrease in accounts payable Decrease in accounts receivable Increase in interest payable Decrease in inconte tax payable Net cash flows from operating activities Cash Flows from Investing Activities Prey 2 of Next 2