Data for Virtual Gaming Systems are provided in P11€“4B.
In P11€“4B, the income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

Required:
Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanyingnote.

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