Problem 11-4B (Algo) 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, 2024 $2,550,000 4,500 2,554,500 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable $1,625,000 610,000 28,000 29,000 25,000 2,367,000 $187,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2024 2023 $289,400 69,500 M $228,900 85,000 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Balance Sheets December 31 2024 2023 $289,400 69,500 $228,900 85,000 152,500 140,000 4,300 6,600 210,000 120,000 212,500 265,000 240,000 215,000 (135,500) (107,500) $953,000 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,042,700 Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Additional Information for 2024: 1. Purchased additional investment in stocks for $90,000. $32,500 $93,000 4,700 3,500 23,000 26,500 255,000 230,000 405,000 350,000 322,500 250,000 $1,042,700 $953,000 Additional Information for 2024: 1. Purchased additional investment in stocks for $90,000. 2. Sold land for $57,000. The land originally was purchased for $52,500, resulting in a $4,500 gain being recorded at the time of the sale. 3. Purchased $25,000 in equipment by issuing a $25,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $115,000. 5. Issued common stock for $55,000. 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.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows - For the Year Ended December 31, 2024 Cash Flows from Operating Activities: