Problem 11-4B Prepare a statement of cash flows-indirect method (L011-2, 11-3, 11-4 The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,540,000 4,000 2,544,000 VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,620,000 Operating expenses 689,000 Depreciation expense 27,000 Interest expense 28,000 Income tax expense 74,000 Total expenses Net income 2,358,000 $ 186,800 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 277,260 70,600 151,000 4,240 $ 217,920 36,000 139,000 6,480 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable 199,000 212,000 238,000 (134,8803 $1,018, 100 110,000 264,000 214,000 (107,000) $930, 400 5 32,000 4.500 $ 92,000 3,480 Prev 1 of 2 Next > MacBook Air Bo 888 :8 DU : @ A 2 $ 4 3 % 5 6 & 7 00. 9 W E R T Y U I VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 217,920 86,000 139,000 6,480 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 277,260 70,600 151,000 4,240 199,000 212,000 238,000 (134,000) $1,018, 100 110,000 264,000 214,000 (107,000) $ 930,400 $ 32,000 4,500 22,600 253,000 394,000 312,000 $1,018, 100 $ 92,000 3,400 26,000 229,000 340,000 240,000 $ 930,400 Additional Information for 2021: 1. Purchase additional investment in stocks for $89,000. 2. Sell land costing $52,000 for $56,000, resulting in a $4,000 gain on sale of land. 3. Purchase $24,000 in equipment by issuing a $24,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $114,000. 5. Issue common stock for $54,000. Renuired Prev 1 of 2 Next > MacBook Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities $ 0 Net cash flows from operating activities Cash Flows from Investing Activities 0 Net cash flows from investing activities Cash Flows from Financing Activiti Prev 1 of 2 Next > MacBook Air DU 30 F3 888 Fa DD 30 F2 F6 FVG ok $ 0 Nel cash flows from operating activities Cash Flows from Investing Activities ences 0 Net cash flows from investing activities Cash Flows from Financing Activities Not cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities 5 Taw Prev 1 of 2 Next > BO 22 DO ot 888 Fa is 38 DI PE ! ( ) @ 2 # 3 $ 4 % 5 & 7 6 8 9 O W R T Y U O A S D F G H J