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		$2,410,000
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
	2024	2023
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 2024:

Purchased additional investment in stocks for $76,000.

Sold land for $53,000. The land originally was purchased for $45,500, resulting in a $7,500 gain being recorded at the time of the sale.

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

Declared and paid a cash dividend of $101,000.

Issued common stock for $41,000.

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 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