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					$	2,530,000
Gain on sale of land						3,500
Total revenues						2,533,500
Expenses:
Cost of goods sold	$	1,615,000
Operating expenses		608,000
Depreciation expense		26,000
Interest expense		27,000
Income tax expense		73,000
Total expenses						2,349,000
Net income					$	184,500

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	265,120			$	206,940
Accounts receivable		71,700				87,000
Inventory		149,500				138,000
Prepaid rent		4,180				6,360
Long-term assets:
Investments		188,000				100,000
Land		211,500				263,000
Equipment		236,000				213,000
Accumulated depreciation		(132,500	)			(106,500	)
Total assets	$	993,500			$	907,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	31,500			$	91,000
Interest payable		4,300				3,300
Income tax payable		22,200				25,500
Long-term liabilities:
Notes payable		251,000				228,000
Stockholders' equity:
Common stock		383,000				330,000
Retained earnings		301,500				230,000
Total liabilities and stockholders equity	$	993,500			$	907,800

Additional Information for 2021:

1. Purchase additional investment in stocks for $88,000.

2. Sell land costing $51,500 for $55,000, resulting in a $3,500 gain on sale of land.

3. Purchase $23,000 in equipment by issuing a $23,000 long-term note payable to the seller. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $113,000.

5. Issue common stock for $53,000.

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.)