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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,

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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, 2018 Net sales Gain on sale of land $ 2,580,000 6,000 2,586,000 Total revenues Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $1,640,000 613,000 31,000 32,000 78,000 Total expenses 2,394,000 $ Net income 192,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 $ Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation 355,520 $ 66,200 157,000 4,480 291,840 82,000 143,000 6,960 213,000 214,000 246,000 (140,000) 120,000 268,000 218,000 (109,000) Total assets $ 1,116,200 $ 1,020,800 34,000 $ 5,000 24,200 96,000 3,800 28,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings 261,000 233,000 438,000 354,000 380,000 280,000 Total liabilities and stockholders' equity $ 1.116,200 $ 1,020,800 Additional Information for 2018: 1 Purchase additional investment in stocks for $99.000 2 Sell and costing $14,000 for $60,000 s ing in a $6,000 gain on sale of land 3 Purchase $28,000 in equipment by issuing a $20,000 long term rote payable to the seller. No cash is exc 4. Declare and pay a cash dividend of $110.000 5. Issue common stock for $58,000 e d in the transaction Required: Prepare the statement of cash flows using the indirect method Disclose any noncash transactions in accomparing te List cash outflows and any decrease in cash as negative amounts) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flows from Operating Acties Adjustments to reconcile net income to net cash Hows from operating activities Net cash fows from operating activities Cash Flows from investing Activities W OW Frond 2 cash low from the song comes Netch tows from investing acties Cash Flows to financing Acties Netcash lows from inancing activities Cash at the beginning of the period Cash at the end of the period None Noncash Activites

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