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 $2,460,000 Gain on sale of land 6,000 Total revenues 2,466,000 Expenses: Cost of goods sold $1,580,000 Operating expenses 601,000 Depreciation expense 19,000 Interest expense 20,000 Income tax expense 66,000 Total expenses 2,286,000 Net income $ 180,000 6011 2020 $ 77,680 86,000 131,000 4,920 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 Assets Current assets: Cash $ 134,540 Accounts receivable 71,400 Inventory 139,000 Prepaid rent 3,160 Long-term assets: Investments 201,000 Land 206,000 Equipment 222,000 Accumulated depreciation (122,000) Total assets $ 855,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 28,000 Interest payable 3,700 Income tax payable 28,400 Long-term liabilities: Notes payable 255,000 Stockholders' equity: Common stock 306,000 Retained earnings 234,000 Total liabilities and stockholders' $ 855,100 equity 120,000 254,000 206,000 (103,000) $ 776,600 $ 84,000 2,600 31,000 239,000 260,000 160,000 $ 776,600 Additional Information for 2021: 1. Purchase additional investment in stocks for $81,000. 2. Sell land costing $48,000 for $54,000, resulting in a $6,000 gain on sale of land. 3. Purchase $16,000 in equipment by issuing a $16,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $106,000. 5. Issue common stock for $46,000. 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, 2021 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