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The income statement balance sheets, and additional information for Virtual Gaming Systems are provided $2,530,000 3,500 2,533,580 VIRTUAL GAMING SYSTEMS Income Statement For the year

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The income statement balance sheets, and additional information for Virtual Gaming Systems are provided $2,530,000 3,500 2,533,580 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 $1,615,000 Operating expenses 608,000 Depreciation expense 26,000 Interest expense 27,000 Income tax expense 73.900 Total expenses Net Income 2,3349,000 $184,500 VIRTUAL GALING SYSTEMS Balance Sheets December 31 2021 2020 $ 265,120 71,700 149,500 4,180 Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment $ 266,946 87,000 138,000 6,360 188,000 211,500 236,000 100,000 263,000 13,000 149,50 4,180 138,000 6,368 188,800 211,500 236,000 (132,500) $ 993,580 100,000 263,000 213,000 (106,580) $997,800 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-tern liabilities: Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity $ 31,500 4,300 22,200 $ 91,080 3,380 25, 580 251,000 228,000 383,000 301, See $ 993,500 330,800 230,000 5997,800 Additional Information for 2021: 1. Purchase additional Investment in stocks for $88,000 2. Sell land costing $51,500 for $55,000. resulting in a $3,500 gain on sale of land 3. Purchase $23.000 in equipment by issuing a $23.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declore and pay a cash dividend of $113,000 5 Issue common stock for $53.000. Required Prenare the statement of cash inws using the dirt method Disease annoneath tons in an arcomanvina note ili HY. Prepare the statement of cash flows using the Indirect method. Disclose any noncash transactions in an accompanying note (L 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 Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Gain (on sale of land) Decrease in accounts receivable Increase in interest payable Decrease in income tax payable Decrease in accounts payable Decrease in prepaid rent 0 Net cash flows from operating activities Cash Flows from Investing Activities Net loss Purchase investment in stock Decrease in income tax payable Decrease in accounts payable Decrease in prepaid rent S 0 Net cash flows from operating activities Cash Flows from investing Activities Net loss Purchase investment in stock Net cash flows from investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note Noncash Activities

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