Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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,
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, 2021 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 $1,645,000 614,000 32,000 33,000 $2,590,000 6,500 2,596,500 79,000 2,403,000 $ 193,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 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: Common stock $ 397,360 65,100 158,500 $ 332,820 81,000 144,000 4,540 7,080 194,000 100,000 214,500 269,000 248,000 219,000 (141,500) (109,500) $1,140,500 $1,043,400 $ 34,500 4,900 24,600 $ 97,000 3,900 28,500 263,000 234,000 449,000 390,000 Retained earnings 364,500 290,000 Total liabilities and stockholders' equity $1,140,500 $1,043,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $94,000. 2. Sell land costing $54,500 for $61,000, resulting in a $6,500 gain on sale of land. 3. Purchase $29,000 in equipment by issuing a $29,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $119,000. 5. Issue common stock for $59,000. 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.) Cash Flows from Operating Activities VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 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 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0 0 0 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started