The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided. $2,460,000 6,000 2,466,000 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses Coat 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 Net Income 2,286,000 $ 180,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 134,540 71,400 139,000 3,160 $77,680 86,000 131,000 4,920 Asseta Current assets: Canh Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total asseta 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 abilities and stockholders equity 201,000 206,000 222,000 (122,000) $ 855,100 120,000 254,000 206,000 (103,000) $ 776,600 $ 84,000 $ 28,000 3,700 28,400 2,600 I 31,000 255,000 239,000 306,000 234,000 $ 855,100 260,000 160.000 $776,600 Additional Information for 2021; Additional Information for 2021: 1. Purchase additional Investment in stocks for $81,000. 2. Sell land costing $48,000 for $54,000, resulting in a $6,000 gain on sale of land. 3. Purchase $16,000 in equipment by Issuing a $16,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $106,000. 5. Issue common stock for $46,000. 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 cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flown For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Decrease in accounts receivable Increase in inventory Decrease in prepaid rent $ 0 Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in stock Proceeds from sale of land 0 Net cash flows from Investing activities Cash Flows from Financing Activities Not Income Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period INA NA Artis $ 0 required Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Decrease in accounts receivable Increase in Inventory Decrease in prepaid rent Net cash flows from operating activities Cash Flows from Investing Activities Purchase investment in stock Proceeds from sale of land Net cash flows from investing activities Cash Flows from Financing Activities Not Income Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ Prev 1 of 5
