The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,570,000 5,500 2,575,500 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 $1,635,000 Operating expenses 612,000 Depreciation expense 30,000 Interest expense 31,000 Income tax expense 77,000 Total expenses Net income 2,385,000 $ 190,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 343,380 67,300 155,500 4,420 $ 280,860 83,000 142,000 6,840 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 202,000 213,500 244,000 (138,500) $1,091,600 110,000 267,000 217,000 (108,500) $ 998, 200 $ $ 33,500 4,800 23,800 95,000 3,700 27,500 259,000 232,000 427,000 343,500 $ 1,091,600 370,000 270,000 $ 998, 200 Additional Information for 2021: 1. Purchase additional investment in stocks for $92,000. 2. Sell land costing $53,500 for $59,000, resulting in a $5,500 gain on sale of land. 3. Purchase $27,000 in equipment by issuing a $27,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $117,000. 5. Issue common stock for $57,000. 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.)