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The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided 52,540,000 4,000 2,544, eee VIRTUAL GAMINI SYSTEMS Income Statement For the

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The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided 52,540,000 4,000 2,544, eee VIRTUAL GAMINI SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses Cost of goods sold $1,620,000 Operating expenses 609, cee Depreciation expense 27,000 Interest expense 28,000 Income tax expense 74,000 Total expenses Net Income 2,358,00 $ 186,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2022 2020 $ 227,260 70,600 151,000 4.240 $ 217,920 86,000 139,00 6,480 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipent Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities: 199.000 212,000 235.000 (134,000 $1,018, 100 110,000 264.000 214,000 (107.000 $930,400 $ 32,000 4.500 22,600 $ 92,000 3.400 26,00 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 277,260 70,6ee 151,000 4,240 $ 217,920 86,00 139,000 6.480 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 199,000 212,000 238,eee (134, eee) $1,018, 100 110,000 264,000 214,000 (107.000) $ 93,480 $ 32,600 4,500 22,600 $ 92,000 3,400 26,000 253,000 229.000 394,000 312,000 $1.018,100 340,000 240,000 $930,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $89,000 2. Sell land costing $52,000 for $56,000, resulting in a $4,000 gain on sale of land. 3. Purchase $24,000 in equipment by Issuing a $24,000 long-term note payable to the seller. No cash is exchanged in the transaction 4 Declare and pay a cash dividend of $114,000 5 Issue common stock for $54,000 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 Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Oporating Activities Adjustments to reconcile net income to not cash flows from operating activities es Not cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities 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

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