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

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2012
Revenues		$	2,700,000
Gain on sale of land			2,200
Total revenues			2,702,200
Expenses:
Cost of goods sold	$ 1,610,000
Operating expenses	607,000
Depreciation expense	23,700
Interest expense	24,500
Income tax expense	70,100
Total expenses			2,335,300
Net income		$	366,900

VIRTUAL GAMING SYSTEMS Balance Sheet December 31
	2012	2011
Assets
Current assets:
Cash	$ 371,900	$ 146,000
Accounts receivable	77,000	92,000
Inventory	151,000	142,000
Prepaid rent	4,900	6,300
Long-term assets:
Investments	189,000	130,000
Land	214,000	260,000
Equipment	234,000	213,000
Accumulated depreciation	(133,700)	(110,000)
Total assets	$ 1,108,100	$ 879,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 34,000	$ 95,000
Interest payable	4,900	3,000
Income tax payable	22,000	26,000
Long-term liabilities:
Notes payable	251,000	230,000
Stockholders' equity:
Common stock	264,000	210,000
Retained earnings	532,200	315,300
Total liabilities and stockholders' equity	$ 1,108,100	$ 879,300

Additional Information for 2012:
1.	Purchase additional investment in stocks for $59,000.
2.	Sell land costing $46,000 for $48,200, resulting in a $2,200 gain on sale of land.
3.	Purchase $21,000 in equipment by borrowing $21,000 with a note payable due in three years. No cash is exchanged in the transaction.
4.	Declare and pay a cash dividend of $150,000.
5.	Issue common stock for $54,000.

Required:

Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the year ended December 31, 2012
Cash Flows from Operating Activities
(Click to select)Cash paid for income taxesCash paid for interestCash paid for operating expensesCash received from customersSale of landCash paid to employeesCash paid to suppliers	$
(Click to select)Cash paid for operating expensesCash paid for income taxesCash paid for interestSale of landCash paid to employeesCash received from customersCash paid to suppliers
(Click to select)Cash paid for interestCash paid to suppliersSale of landCash paid for income taxesCash paid for operating expensesCash received from customersCash paid to employees
(Click to select)Cash paid to employeesCash paid to suppliersSale of landCash received from customersCash paid for income taxesCash paid for interestCash paid for operating expenses
(Click to select)Cash paid for interestCash paid to suppliersSale of landCash received from customersCash paid for operating expensesCash paid for income taxesCash paid to employees
Net cash flows from operating activities		$
Cash Flows from Investing Activities
(Click to select)Purchase investment in bondsPurchase investment in stockCash paid for income taxesCash received from customersCash paid for interestSale of landCash paid to suppliers
(Click to select)Cash paid for interestCash received from customersPurchase investment in stockCash paid for income taxesSale of landPurchase investment in bondsCash paid to suppliers
Net cash flows from investing activities
Cash Flows from Financing Activities
(Click to select)Issue common stockCash paid for operating expensesCash paid for interest Purchase investment in bondsPayment of cash dividendsPurchase investment in stockPurchase of equipment
(Click to select)Cash paid for interest Cash paid for operating expensesPurchase investment in stockPayment of cash dividendsPurchase of equipmentIssue common stockPurchase investment in bonds
Net cash flows from financing activities
(Click to select)Net increase in cashNet decrease in cash
(Click to select)Cash at the beginning of the periodCash at the end of the period
(Click to select)Cash at the end of the periodCash at the beginning of the period		$
Noncash Activities
(Click to select)Cash paid for interestCash paid for income taxesPurchase equipment issuing a note payableCash received from customersPurchase investment in bondsCash paid for operating expensesCash paid to suppliers		$