Check my work ne come since sheets, onamento gener VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales $2,540,00 Gain on sale of land Total revenues 2.544,00 Expenses: Cost of goods sold $1,620,000 Operating expenses 609, eee Depreciation expense 27,000 Interest expense 28,000 Income tax expense 74.ee Total expenses 2,358,000 Net income $ 186.000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 277,260 70,600 151,000 4,240 $ 217,92 86,000 139,000 5.48 199,000 212,038 238,000 (134,000) $1,018, 100 110,000 264.000 214, Bee (197,000) $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 $ 32,800 4.500 22,600 $ 92.000 3.400 26,000 253,000 229, see 394.000 312,000 $1,018, 100 340.000 240,00 $930,400 Additional Information for 2021 1. Purchase additional investment in stocks for $89,000 2. Sell and 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 selet. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $114,000 5. Issue common stock for $54,000 Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct 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: Cash received from customers 2,555,400 Cash paid for operating expenses Cash paid for interest Cash paid for income taxes Cash paid to suppliers $ 2,555,400 Net cash flows from operating activities Cash Flows from Investing Activities: Purchase investment in stock Gain (on sale of land) Net cash flows from investing activities Cash Flows from Financing Activities: Payment of cash dividends Issue common stock Net cash flows from financing activities $ 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase equipment incuing a noto payable