The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,600,000 7.ee 2,607,000 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 $1,650,000 Operating expenses 615,000 Depreciation expense 33,000 Interest expense 34,000 Income tax expense 80,000 Total expenses Net income 2,412,000 $ 195,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 499,500 64,000 160,000 4,600 $ 343,800 80,000 145.000 21200 Assets Current assets: Cash Accounts receivable Inventory Prepeld rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets abilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term liabilities Notes payable Stockholders equity Culemon stock Betained caring Total abilities and stockholders' equity 205,000 215.000 250.000 (142).000 $1,165,100 110.000 270.000 220.000 (110 000 $1.066.000 35,000 5.100 25,000 98.000 4.000 29.000 265,000 235,000 460,000 375.000 $1,165,100 400.000 100.000 $1,066,000 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 Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Casly at the end of the period Note Noncash Activities