The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided. $2,550,000 4,500 2,554,500 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 $1,625,000 Operating expenses 610,000 Depreciation expense 28,000 Interest expense 29,000 Income tax expense 75,000 Total expenses Net income 2,367,000 $ 187,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 5 289.400 69.500 152,500 4,300 $ 228.900 B5,000 140,000 6,600 210,000 212,500 240,000 (135,500) $1,042,700 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 Retained earnings Total liabilities and stockholders' equity 120,000 265.000 215,000 (107,500 5.953,000 $ 32,500 4,700 23,000 $ 93,000 3,500 26,500 255,000 230,000 405,000 322,500 $1,042,200 350,000 250,000 $ 953,000 Additional Information for 2021; 1. Purchase additional Investment in stocks for $90,000. 2. Sellfand costing $52,500 for $57,000, resulting in a $4,500 gain on sale of land. 3. Purchase $25,000 in equipment by Issuing a $25,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declore and pay a cash dividend of $115,000. 5. Issue common stock for $55,000. 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.) VIRTUAL GAMING SYSTEMS Staternent of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile not income to net cash flows from operating activities: Net cash flows from operating activites Cash Flows from Investing Activities Not cash flows from investing activities Cash Flows from Financing Activities Nel cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities