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, 2021
Net sales					$	2,400,000
Gain on sale of land						9,000
Total revenues						2,409,000
Expenses:
Cost of goods sold	$	1,550,000
Operating expenses		595,000
Depreciation expense		13,000
Interest expense		14,000
Income tax expense		60,000
Total expenses						2,232,000
Net income					$	177,000

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	107,300			$	50,800
Accounts receivable		66,000				80,000
Inventory		130,000				125,000
Prepaid rent		2,800				4,200
Long-term assets:
Investments		175,000				100,000
Land		154,000				199,000
Equipment		210,000				200,000
Accumulated depreciation		(113,000	)			(100,000	)
Total assets	$	732,100			$	659,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	25,000			$	78,000
Interest payable		3,100				2,000
Income tax payable		32,000				34,000
Long-term liabilities:
Notes payable		255,000				245,000
Stockholders' equity:
Common stock		240,000				200,000
Retained earnings		177,000				100,000
Total liabilities and stockholders equity	$	732,100			$	659,000

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.)