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, 2021Net sales$2,490,000Gain on sale of land2,500Total revenues2,492,500Expenses:Cost of goods sold$1,595,000Operating expenses604,000Depreciation expense22,000Interest expense23,000Income tax expense69,000Total expenses2,313,000Net income$179,500

VIRTUAL GAMING SYSTEMS

Balance Sheets

December 3120212020AssetsCurrent assets:Cash$178,760$123,620Accounts receivable74,10089,000Inventory143,500134,000Prepaid rent3,3405,280Long-term assets:Investments204,000120,000Land209,500259,000Equipment228,000209,000Accumulated depreciation(126,500)(104,500)Total assets$914,700$835,400Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable$29,500$87,000Interest payable4,1002,900Income tax payable26,60029,500Long-term liabilities:Notes payable255,000236,000Stockholders' equity:Common stock339,000290,000Retained earnings260,500190,000Total liabilities and stockholders' equity$914,700$835,400

Additional Information for 2021:

1. Purchase additional investment in stocks for $84,000.
2. Sell land costing $49,500 for $52,000, resulting in a $2,500 gain on sale of land.
3. Purchase $19,000 in equipment by issuinga $19,000 long-term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $109,000.
5. Issue common stock for $49,000.

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.)