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		$2,450,000
Gain on sale of land		7,500
Total revenues		2,457,500
Expenses:
Cost of goods sold	$1,575,000
Operating expenses	600,000
Depreciation expense	18,000
Interest expense	19,000
Income tax expense	65,000
Total expenses		2,277,000
Net income		$180,500

VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$139,400	$81,700
Accounts receivable	70,500	85,000
Inventory	137,500	130,000
Prepaid rent	3,100	4,800
Long-term assets:
Investments	180,000	100,000
Land	205,500	253,000
Equipment	220,000	205,000
Accumulated depreciation	(120,500)	(102,500)
Total assets	$835,500	$757,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$27,500	$83,000
Interest payable	3,500	2,500
Income tax payable	29,000	31,500
Long-term liabilities:
Notes payable	255,000	240,000
Stockholders' equity:
Common stock	295,000	250,000
Retained earnings	225,500	150,000
Total liabilities and stockholders equity	$835,500	$757,000

Additional Information for 2024:

Purchased additional investment in stocks for $80,000.

Sold land for $55,000. The land originally was purchased for $47,500, resulting in a $7,500 gain being recorded at the time of the sale.

Purchased $15,000 in equipment by issuing a $15,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $105,000.

Issued common stock for $45,000.

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.)

VIRTUAL GAMING SYSTEMS
Statement of Cash Flows
For the Year Ended December 31, 2024
Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities		$0
Cash Flows from Investing Activities:
Net cash flows from investing activities		0
Cash Flows from Financing Activities:
Net cash flows from financing activities		0
Cash at the beginning of the period
Cash at the end of the period		$0
Note: Noncash Activities