The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,520,000 3,000 2,523,000 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Not sales Gain on sale of land Total revenues Expenses Cost of goods sold $1,610,000 Operating expenses 607,000 Depreciation expense 25,000 Interest expenso 26,000 Income tax expense 72,000 Total expenses Not income 2,340,000 $ 183,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 223,280 72,200 148.000 4,120 $ 165,960 88,000 137,000 6,240 Asseto Current assets Cash Accounts receivable Inventory Prepaid rent Tong-term annotat Investments Land Equipnent Rocumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders equity! Comon stock Retained earning 207.000 211,000 234,000 (231.000) $ 969,200 120,000 262,000 212,000 (206.000) $ 885,200 $ 31,000 4.400 21,800 249,000 $ 90,000 3,200 25,000 227, boo 320,000 220.000 372,000 291,000 $ 31,000 4,400 22,800 $ 90,000 3,200 25,000 Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notos payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 249,000 227,000 372.000 291,000 $969,200 320,000 220,000 $ 885,200 Additional Information for 2021: 1. Purchase additional investment in stocks for $87000. 2. Sell land costing $51,000 for $54,000, resulting in a $3,000 gain on sale of land. 3. Purchase $22,000 in equipment by Issuing a $22,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $112,000. 5. Issue common stock for $52,000. Prepare the statement of cash flows for Virtual Gaming Systems using the direct method Okclose 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 Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net 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