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

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

Transcribed Image Text:

Net sales Gain on sale of land Total revenues Expenses: VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,650,000 615,000 33,000 34,000 80,000 $2,600,000 7,000 2,607,000 2,412,000 $ 195,000