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, 2024
Net sales		$2,600,000
Gain on sale of land		7,000
Total revenues		2,607,000
Expenses:
Cost of goods sold	$1,650,000
Operating expenses	615,000
Depreciation expense	33,000
Interest expense	34,000
Income tax expense	80,000
Total expenses		2,412,000
Net income		$195,000

VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$409,500	$343,800
Accounts receivable	64,000	80,000
Inventory	160,000	145,000
Prepaid rent	4,600	7,200
Long-term assets:
Investments	205,000	110,000
Land	215,000	270,000
Equipment	250,000	220,000
Accumulated depreciation	(143,000)	(110,000)
Total assets	$1,165,100	$1,066,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 35,000	$ 98,000
Interest payable	5,100	4,000
Income tax payable	25,000	29,000
Long-term liabilities:
Notes payable	265,000	235,000
Stockholders' equity:
Common stock	460,000	400,000
Retained earnings	375,000	300,000
Total liabilities and stockholders equity	$1,165,100	$1,066,000

Additional Information for 2024:

Purchased additional investment in stocks for $95,000.

Sold land for $62,000. The land originally was purchased for $55,000, resulting in a $7,000 gain being recorded at the time of the sale.

Purchased $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $120,000.

Issued common stock for $60,000.

Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)