The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,580,000 6,000 2,586,000 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 $1,640,000 Operating expenses 613,000 Depreciation expense 31,000 Interest expense 32,000 Income tax expense 78,000 Total expenses Net income 2,394,000 $ 192,000 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 355,520 66,200 157,000 4,480 $ 291,840 82,000 143,000 6,960 213,000 214,000 246,000 (140,000) $1,116,200 120,000 268,000 218,000 (109.000) $1,020,800 TELI (140.000) $1,116,200 (109,000) $1,020,800 5 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 1labilities and stockholders' equity 34,000 5,000 24,200 96,000 3,800 28,000 261,006 233,000 438,000 354,000 $1,116,200 380,000 280,000 $1,020,800 Additional Information for 2021: 1. Purchase additional Investment in stocks for $93,000, 2. Sell land costing $54,000 for $60,000, resulting in a $6,000 gain on sale of land. 3. Purchase $28,000 in equipment by Issuing a $28,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $118,000. 5. Issue common stock for $58,000 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.)