The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

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The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statenent For the year ended December 31, 2021 $2, 470, 000 5, 500 Net sales Gain on sale of land 2, 475, 500 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Incone tax expense Total expenses $1, 585, 000 602. 000 20. 000 21, 000 67, 000 2, 295, 000 $ 180, 500 Net incone VIRTUAL GAMING SYSTEIS Balance Sheets December 31 2021 2020 Assets Cur rent assets $ 158, 680 72. 300 140, 500 $101, 660 87, 000 132, 000 5. 040 Cash Accounts receivable Inventory Prepaid rent Long-tem assets Irvestments Land Equipnent Accunul at ed depreciation 3, 220 192, 000 208, 500 110, 000 257, 000 224, 000 207, 000 (103, 500) $796, 200 (123, 500) Total assets $ 875, 700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term 1iabilities Not es parable Stockholders equity Common stock Ret ained eaminge $ 28. 500 $ 05, 000 3, 900 27, 800 2, 700 30, 500 255, 000 238, 000 317, 000 243, 500 270. 000 170, 000 $ 796, 200 Tot al liabilities and stockholder: equity $ 875. 700 Saved Current liabilities Accounts payable Interest payable Income tax payable Long-tem liabilities: Notes payable Stockholders equity Conmon stock Ret ained eamings $28, 600 $ 85, 000 2, 700 30, 500 3, 900 27, 800 255 000 238, 000 317, 000 243. 500 270, 000 170, 000 $875, 700 $ 796, 200 Tot al liabilities and stockholders' equity Additional Information for 2021: 1. Purchase additional investment in stocks for $82.000 2 Sell land costing $48,500 for $54,000, resulting in a $5,500 gain on sale of land. 3. Purchase $17,000 in equipment by issuing a $17,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $107,000. 5. Issue common stock for $47000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List casi 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 180,500 Adjustments to reconcile net income to net cash fows from operating activities Gain (on sale of land) Depreciation expense (5,500) 20,000: Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Increase in interest payable Decrease in income tax payable