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 $ 2,560,000 Gain on sale of land 5,000 2,565,000 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,630,000 611,000 29,000 30,000 76,000 Total expenses 2,376,000 Net income $ 189,000 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 331,240 $ 68,400 154,000 4,360 269,880 84,000 141,000 6,720 191,000 213,000 242,000 (137.000) 100,000 266,000 216,000 (108,000) Total assets $ 1,067,000 $ 975,600 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 33,000 $ 4,600 23,400 94,000 3,600 27,000 257,000 231,000 416,000 333,000 360,000 260,000 Total liabilities and stockholders' equity $ 1,067,000 $ 975,600 Additional Information for 2018: 1. Purchase additional investment in stocks for $91,000. 2. Sell land costing $53,000 for $58,000, resulting in a $5,000 gain on sale of land. 3. Purchase $26,000 in equipment by issuing a $26,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $116,000. 5. Issue common stock for $56,000. Required: Prepare the statement of cash flows using the indirect 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, 2018 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: $ 0 Net cash flows from operating activities Cash Flows from Investing Activities 0 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 $