The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

VIRTUAL GAMING SYSTEMS

Income Statement

For the Year Ended December $31,2024$

Net sales $$2,550,000$

Gain on sale of land $4,500$

Total revenues $2,554,500$

Expenses:

Cost of goods sold $$1,625,000$

Operating expenses $610,000$

Depreciation expense $28,000$

Interest expense $29,000$

Income tax expense $75,000$

Total expenses $2,367,000$

Net income $$187,500$

VIRTUAL GAMING SYSTEMS

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$289,400$ $$228,900$

Accounts receivable $69,50085,000$

Inventory $152,500140,000$

Prepaid rent $4,3006,600$

Long$-$term assets:

Investments $210,000120,000$

Land $212,500265,000$

Equipment $240,000215,000$

Accumulated depreciation $(135,500)(107,500)$

Total assets $$1,042,700$ $$953,000$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$32,500$ $$93,000$

Interest payable $4,7003,500$

Income tax payable $23,00026,500$

Long$-$term liabilities:

Notes payable $255,000230,000$

Stockholders' equity:

Common stock $405,000350,000$

Retained earnings $322,500250,000$

Total liabilities and stockholders$$ equity $$1,042,700$ $$953,000$

Additional Information for $2024$:

Purchased additional investment in stocks for $$90,000.$

Sold land for $$57,000.$ The land originally was purchased for $$52,500,$ resulting in a $$4,500$ gain being recorded at the time of the sale.

Purchased $$25,000$ in equipment by issuing a $$25,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$115,000.$

Issued common stock for $$55,000.$

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. $($Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.$)$