The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,590,eee 6,500 2,596,500 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 $1,645, eee Operating expenses 614,000 Depreciation expense 32,000 Interest expense 33,eee Income tax expense 79,689 Total expenses Net Income 2,483, eee $ 193,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2e21 2020 $ 397, 360 65,100 158,500 4,548 $ 332,820 81,808 144, een 7, e88 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: Connon stock Retained earnings Total liabilities and stockholders' equity 194, eee 214,500 248,000 (141,580) $1,148,500 180,00 269,000 219,00 (189,500) $1,043,400 $ $ 34,500 4,988 24, 686 97,000 3,900 28,586 234.000 263,eee 449,000 364,500 $1,140,580 390,000 290,000 $1,043, 400 Additional Information for 2021: 1. Purchase additional Investment in stocks for $94,000. 2. Sell land costing $54,500 for $61.000, resulting in a $6.500 gain on sale of land. 3. Purchase $29.000 in equipment by Issuing a $29,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash olvidend of $119,000. 5. Issue common stock for $59,000. 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: $ 0 Net cash flows from operating activities Cash Flows from Investing Activities 0 Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0