The Income statement, balance sheets, and additional Information for Virtual Gaming Systems are provided. $2,400,000 9,000 2,409,000 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 $1,550,000 Operating expennen 595,000 Depreciation expense 13,000 Interest expense 14,000 Income tax expense 60,000 Total expenses Net income 2,232 000 $ 177,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 107,300 66,000 130,000 2,800 50,800 80,000 125,000 4,200 Assets Current Assets Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders Equity Current liabilitiest Accounts payable Interest payable Income tax payable Long-term liabilities: --- 175,000 154,000 210,000 (113,000) $ 732,100 100,000 199.000 200,000 (100,000) 5 659,000 $ 25,000 3,100 32,000 $ 78,000 2,000 34,000 MAA Additional Information for 2021: 1. Purchase additional investment in stocks for $75,000. 2. Sell land costing $45,000 for $54,000, resulting in a $9,000 gain on sale of land. 3. Purchase $10,000 in equipment by Issuing a $10,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $100,000. 5. Issue common stock for $40,000. 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 Net income Adjustments to reconcile net income to not cash flows from operating activities: $ 177,000 $ 177,000 Net cash flows from operating activities Cash Flows from Investing Activities MUUSTIL I TULLUT TULU TRR SE HUW HUIS RUVIR $ Net cash flows from operating activities Cash Flows from Investing Activities 177,000 Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities