The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,490,000 2,500 2, 492,500 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 $1,595,000 Operating expenses 604,000 Depreciation expense 22,000 Interest expense 23,000 Income tax expense 69,000 Total expenses Net income 2,313,000 $ 179,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 178,760 74,100 143,500 3,340 $ 123,620 89,000 134,000 5,280 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' equitys Common stock Retained carnings Total liabilities and stockholders' equity 204,000 209,500 228,000 (126,500) $ 914,700 120,000 259,000 209,000 (1104,500 $ 835, 400 $ $ 29,500 4,100 26,600 87,000 2,900 29,500 255,000 236,000 339,000 260.500 $ 914,700 290,000 190.000 $ 835,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $84 000 Additional Information for 2021: 1. Purchase additional investment in stocks for $84,000, 2. Sell land costing $49,500 for $52,000, resulting in a $2,500 gain on sale of land, 3. Purchase $19,000 in equipment by issuing a $19,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $109,000. 5. Issue common stock for $49,000. 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, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities Net cathows from eating Cash Flows from investing Acties 5 0 Netcash flows from investing activities Cash VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating eexities: Net cash flows from operating activities Cash Flows from Investing Activities 0 Net cash flows from investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0