The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

Additional Information for 2015:
1. Purchase additional investment in stocks for $95,000.
2. Sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land.
3. Purchase $30,000 in equipment by borrowing $30,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $120,000.
5. Issue common stock for $60,000.

Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanyingnote.

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VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2015 Net sales Gain on sale of land $2,600,000 7000 2,607,000 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $1,650,000 615,000 33,000 34,000 80,000 Total expenses 2,412,000 S 195,000 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2015 2014 Assets Current assets Cash Accounts receivable Inventory Prepaid rent S409,500 64,000 160,000 4,600 S 343,800 80,000 145,000 7,200 Long-term assets: Investments Land Equipment Accumulated depreciation 205,000 215,000 250,000 (143,000) $1,165,100 110,000 270,000 220,000 (110,000) $1,066,000 Total assets Liabilities and Stockholders' E Current liabilities: S 35,000 5,100 25,000 S 98,000 4,000 29,000 payable Interest payable Income tax payable Notes payable Common stock Long-term liabilities: 265,000 235,000 Stockholders equity: 460,000 375,000 $1.165.100 400,000 300,000 Retained eamings Total liabilities and stockholders' equity $1,066,000