VIRTUAL GAMING SYSTEMS Balance Sheet December 31 2015 2014 Assets Current assets: Cash $ 397,360 $ 332,820 Accounts receivable 65,100 81,000 Inventory 158,500 144,000 Prepaid rent 4,540 7,080 Long-term assets: Investments 194,000 100,000 Land 214.500 269,000 Equipment 248,000 219,000 Accumulated depreciation (141,500) (109,500) Total assets $ 1,140,500 $ 1,043,400 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings 34,500 $ 97,000 4,900 3,900 24,600 28,500 263,000 234,000 449,000 364,500 390,000 290,000 Total liabilities and stockholders' equity $ 1,140,500 $1,043,400 Additional Information for 2015: 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 borrowing $29,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend 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 Balance Sheet December 31 2015 2014 Assets Current assets: Cash $ 397,360 $ 332,820 Accounts receivable 65,100 81,000 Inventory 158,500 144,000 Prepaid rent 4,540 7,080 Long-term assets: Investments 194,000 100,000 Land 214.500 269,000 Equipment 248,000 219,000 Accumulated depreciation (141,500) (109,500) Total assets $ 1,140,500 $ 1,043,400 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings 34,500 $ 97,000 4,900 3,900 24,600 28,500 263,000 234,000 449,000 364,500 390,000 290,000 Total liabilities and stockholders' equity $ 1,140,500 $1,043,400 Additional Information for 2015: 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 borrowing $29,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend 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.)
