Problem $11-4$B $($Algo$)$ Prepare a statement of cash flows$$indirect method $($LO$11-2,11-3,11-4,11-5)$

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

VIRTUAL GAMING SYSTEMS

Income Statement

For the Year Ended December $31,2024$

Net sales $$2,490,000$

Gain on sale of land $2,500$

Total revenues $2,492,500$

Expenses:

Cost of goods sold $$1,595,000$

Operating expenses $604,000$

Depreciation expense $22,000$

Interest expense $23,000$

Income tax expense $69,000$

Total expenses $2,313,000$

Net income $$179,500$

VIRTUAL GAMING SYSTEMS

Balance Sheets

December $31$

$20242023$

Assets

Current assets:

Cash $$178,760$ $$123,620$

Accounts receivable $74,10089,000$

Inventory $143,500134,000$

Prepaid rent $3,3405,280$

Long$-$term assets:

Investments $204,000120,000$

Land $209,500259,000$

Equipment $228,000209,000$

Accumulated depreciation $(126,500)(104,500)$

Total assets $$914,700$ $$835,400$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $$29,500$ $$87,000$

Interest payable $4,1002,900$

Income tax payable $26,60029,500$

Long$-$term liabilities:

Notes payable $255,000236,000$

Stockholders' equity:

Common stock $339,000290,000$

Retained earnings $260,500190,000$

Total liabilities and stockholders$$ equity $$914,700$ $$835,400$

Additional Information for $2024$:

Purchased additional investment in stocks for $$84,000.$

Sold land for $$52,000.$ The land originally was purchased for $$49,500,$ resulting in a $$2,500$ gain being recorded at the time of the sale.

Purchased $$19,000$ in equipment by issuing a $$19,000$ long$-$term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $$109,000.$

Issued common stock for $$49,000.$

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. $($Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.$)$