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, 2018 $ 2,440,000 9,000 Net sales Gain on sale of land 2,449,000 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,570,000 599,000 17,000 18,000 64,000 Total expenses 2,268,000 $ 181,000 Net income VIRTUAL GAMIINGSYSTEMTS Balance Sheets December 31 2018 2017 Assets Current assets $114,560 $ 55,720 84,000 129,000 4,680 Cash Accounts receivable Inventory Prepaid rent 69,600 136,000 3,040 Long-term assets Investments Land Equipment Accumulated depreciation 189,000 205,000 218,000 (119,000) 110,000 252,000 204,000 (102,000) $816,200 737,400 Total assets Liabilities and Stockholders' Equity Current liabilities 82,000 2,400 32,000 27,000 $ Accounts payable Interest payable Income tax payable 3,600 29,600 255,000 284,000 Long-term liabilities Notes payable 241,000 Stockholders' equity: Common stock Retained earnings 240,000 140,000 217,000 $816,200 737,400 Total liabilities and stockholders' equity Additional Information for 2018 1. Purchase additional investment in stocks for $79,000 2. Sell land costing $47,000 for $56,000, resulting in a $9,000 gain on sale of land 3. Purchase $14,000 in equipment by issuing a $14,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $104,000 5. Issue common stock for $44,000. Cash Flows from Operating Activities 181,000 Net income Adjustments to reconcile net income to net cash flows from operating activities $ 181,000 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 Cash at the end of the period Note: Noncash Activities