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, 2021
Net sales					$	2,410,000
Gain on sale of land						7,500
Total revenues						2,417,500
Expenses:
Cost of goods sold	$	1,555,000
Operating expenses		596,000
Depreciation expense		14,000
Interest expense		15,000
Income tax expense		61,000
Total expenses						2,241,000
Net income					$	176,500

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	122,440			$	66,780
Accounts receivable		66,900				81,000
Inventory		131,500				126,000
Prepaid rent		2,860				4,320
Long-term assets:
Investments		176,000				100,000
Land		154,500				200,000
Equipment		212,000				201,000
Accumulated depreciation		(114,500	)			(100,500	)
Total assets	$	751,700			$	678,600
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	25,500			$	79,000
Interest payable		3,300				2,100
Income tax payable		31,400				33,500
Long-term liabilities:
Notes payable		255,000				244,000
Stockholders' equity:
Common stock		251,000				210,000
Retained earnings		185,500				110,000
Total liabilities and stockholders equity	$	751,700			$	678,600

Additional Information for 2021:

Purchase additional investment in stocks for $76,000.

Sell land costing $45,500 for $53,000, resulting in a $7,500 gain on sale of land.

Purchase $11,000 in equipment by issuing a $11,000 long-term note payable to the seller. No cash is exchanged in the transaction.

Declare and pay a cash dividend of $101,000.

Issue common stock for $41,000.

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: \begin{tabular}{|l|l||} \hline Cash received from customers & \\ \hline \hline Cash paid to suppliers & \\ \hline Cash paid for operating expenses \\ \hline Cash paid for income taxes & \\ \hline Cash paid for interest & \\ \hline & \\ \hline \end{tabular} Net cash flows from operating activities Cash Flows from Investing Activities