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 S 2,430,000 6,500 Total revenues 2,436,500 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $1,565,000 598,000 16,000 17,000 63,000 Total expenses 2,259,000 Net income S 177,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent 81,420$ 68,700 134,500 2,980 25,740 83,000 128,000 4,560 Long-term assets: Investments Land Equipment 198,000 208,500 216,000 (117,500) 120,000 255,000 203,000 (101,500) Total assets $792,600 717,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable 26,500 S 81,000 2,300 32,500 3,400 30,200 255,000 273,000 Long-term liabilities: Notes payable 242,000 Stockholders' equity: Common stock Retained earnings 230,000 130,000 204,500 Total liabilities and stockholders' equity $792,600 S 717,800 Additional Information for 2018: 1. Purchase additional investment in stocks for $78,000 2. Sell land costing $46.500 for $53,000, resulting in a $6,500 gain on sale of land 3. Purchase $13,000 in equipment by borrowing $13,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of S103,000 5. Issue common stock for $43,000