The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,460,000 6,000 2,466,000 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues 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 Net income 2,286,000 $ 180,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 134,540 71,400 139,000 3,160 $ 77,680 86,000 131,000 4,920 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders. Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable 201,000 26 , 222,000 (122,000) $ 855,100 120,000 254, eee 286,000 (103,eee) $ 776,600 $ 28,000 3,700 28,4ee $ 84,000 2,600 31, 255, eee 239, eee VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 134,540 71,400 139,000 3,160 $ 77,680 86,000 131,000 4,920 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 201,600 206,00 222,00 (122,000) $855, 100 120,000 254,000 205,00er (103,eee) 5 776,600 $ 28,000 3,700 28,480 $ 84, Bee 2,600 31,000 255, eee 239, eee 306,80 234,000 $ 855, 100 260, eee 160, eee $ 776,600 Additional Information for 2021: 1. Purchase additional Investment in stocks for $81,000. 2. Sellland 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 for Virtual Gaming Systems using the direct method Disclose any noncash transactions in an 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 Not cash flows from operating activities Cash Flows from Investing Activities: S 0 0 Net cash flows from investing activities Cash Flows from Financing Activities Not cash flows from financing activities 0 Cash at the beginning of the period