Problem 11-48 Prepare a statement of cash flows-indirect method (LO11-2, 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, 2021 Net sales $2,430,000 Gain on sale of land 6,500 Total revenues 2,436,500 Expenses: Cost of goods sold $1,565,000 Operating expenses 598,000 Depreciation expense 16,000 Interest expense 17,000 Income tax expense 63,000 Total expenses 2,259,000 Net income $ 177,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 81,420 68.700 134,500 2,980 $ 25,740 83,000 128,000 4.560 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets. Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity 198,000 208,500 216.000 (117.500) $ 792,600 120,000 255,000 203,000 (101,500) $ 717,800