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 $ 2,470,000 5,500 2,475,500 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,585,000 602,000 20,000 21,000 67,000 Total expenses 2,295,000 Net income 180,500 I 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 158,680 $ 72,300 140,500 3,220 101,660 87,000 132,000 5,040 192,000 208,500 224,000 (123,500) 110,000 257,000 207,000 (103,500) STOD 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 158,680 72,300 140,500 3,220 101,660 87,000 132,000 5,040 192,000 208,500 224,000 (123,500) 110,000 257,000 207,000 (103,500) Total assets $ 875,700 S 796,200 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 28,500 3,900 27.800 85,000 2,700 30,500 255,000 238,000 317,000 243,500 270,000 170,000 Total liabilities and stockholders' equity 875,700 $ 796,200 Additional Information for 2018: 1. Purchase additional investment in stocks for $82,000. 2. Sell land costing $48,500 for $54,000, resulting in a $5,500 gain on sale of land. 3. Purchase $17,000 in equipment by issuing a $17,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $107.000. 5. Issue common stock for $47,000 ck for Second or Stumg a 3170 Additional Information for 2018: 1. Purchase additional investment in stocks for $82,000. 2. Sell land costing $48,500 for $54,000, resulting in a $5,500 gain on sale of land. 3. Purchase $17,000 in equipment by issuing a $17,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $107.000 5. Issue common stock for $47,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2018 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 Tuas rows Trompurdung ACUVUES 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