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The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided $2,570,000 5,500 2,575,500 VIRTUAL GAMING SYSTEMS Income Statement For the Year

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The income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided $2,570,000 5,500 2,575,500 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 $1,635,000 Operating expenses 612, eee Depreciation expense 3e,eee Interest expense 31.000 Income tax expense 77,600 Total expenses Net income 2,385,000 $ 190,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 343, 380 67.300 255, see 4,420 $ 280,86e 83,600 142, Bee 6.840 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-tere liabilities Notes payable Stockholders equity! Connon stock Retained earnings Total liabilities and stockholders equity 202,eee 213,500 244,00 (138,500) $1,091,600 110,000 267.000 217,00 (108,500 $998, 20 $ 33,500 4,890 23,80 $ 95,000 3,700 27,50 259.000 232,800 427,000 343,500 $1,091,600 370,000 270,000 $ 998,200 Additional Information for 2021: 1. Purchase additional Investment in stocks for $92,000 2. Sell and costing $53,500 for $59.000, resulting in a $5.500 gain on sale of land 3. Purchase $27,000 in equipment by issuing a $27.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $117.000 5. Issue common stock for $57.000 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 Flow For the Year Ended December 31, 2021 Retained earnings Total liabilities and stockholders' equity 343,50 $1,091,6ee 270,eee $ 998, 2ee Additional Information for 2021: 1 Purchase additional investment in stocks for $92,000. 2. Sell land costing $53,500 for $59,000, resulting in a $5,500 gain on sale of land, 3. Purchase $27.000 in equipment by issuing a $27,000 long-term note payable to the seller. No cash is exchanged in the transaction 4 Declare and pay a cash dividend of $117.000 5. Issue common stock for $57,000 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 Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net cash fows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities Nutcash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activibes

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