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, 2018
Net sales		$	2,560,000
Gain on sale of land			5,000
Total revenues			2,565,000
Expenses:
Cost of goods sold	$ 1,630,000
Operating expenses	611,000
Depreciation expense	29,000
Interest expense	30,000
Income tax expense	76,000
Total expenses			2,376,000
Net income		$	189,000

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2018		2017
Assets
Current assets:
Cash	$	331,240	$	269,880
Accounts receivable		68,400		84,000
Inventory		154,000		141,000
Prepaid rent		4,360		6,720
Long-term assets:
Investments		191,000		100,000
Land		213,000		266,000
Equipment		242,000		216,000
Accumulated depreciation		(137,000)		(108,000)
Total assets	$	1,067,000	$	975,600
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	33,000	$	94,000
Interest payable		4,600		3,600
Income tax payable		23,400		27,000
Long-term liabilities:
Notes payable		257,000		231,000
Stockholders' equity:
Common stock		416,000		360,000
Retained earnings		333,000		260,000
Total liabilities and stockholders equity	$	1,067,000	$	975,600

Additional Information for 2018:

1. Purchase additional investment in stocks for $91,000.

2. Sell land costing $53,000 for $58,000, resulting in a $5,000 gain on sale of land.

3. Purchase $26,000 in equipment by borrowing $26,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $116,000.

5. Issue common stock for $56,000.

Required:

Prepare the statement of cash flows using the indirect 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, 2018 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 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