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 355,520 66,200 157.000 4,480 $ 291,840 82,000 143,000 6,960 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total asset 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 213,000 214,000 246,000 (140,000 $1,116,200 120.000 268,000 218,000 (109,000) $1,020,800 $ $ 34,000 5,000 24,200 96,000 3,800 28,000 261,000 233,000 438,000 354,000 $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. VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities - Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities $ 0 Net cash flows from investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0