The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $ 2,540,000 4,000 2,544,000 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 $1,620,000 Operating expenses 609,000 Depreciation expense 27,000 Interest expense 28,000 Income tax expense 74,000 Total expenses Net income 2,358,000 $ 186,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets $ 277,260 70,600 151,000 4,240 $ 217,920 86,000 139,000 6,480 199,000 212,000 238,000 (134,000) $1,018, 100 110,000 264,000 214,000 (107,000) $ 930, 400 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 $ $ 32,000 4,500 22,600 92,000 3,400 26,000 253,000 229,000 394,000 312.000 340,000 240,000 $ 930, 400 $1,018, 100 Chapter 11 Homework December 31 2021 2020 $ 277, 260 70, 600 151,000 4,240 $ 217,920 86,000 139,000 6,480 199,000 212,000 238,000 (134,000) $1,018, 100 110,000 264,000 214,000 (107,000) $ 930, 400 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 $ $ 32,000 4,500 22,600 92,000 3,400 26,000 253,000 229,000 394,000 312,000 $1,018,100 340,000 240,000 $ 930,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $89,000. 2. Sell land costing $52,000 for $56,000, resulting in a $4,000 gain on sale of land. 3. Purchase $24,000 in equipment by issuing a $24,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $114,000. 5. Issue common stock for $54,000. For the Year Ended vecember 31, 2021 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