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
Net sales		$	2,600,000
Gain on sale of land			7,000
Total revenues			2,607,000
Expenses:
Cost of goods sold	$ 1,650,000
Operating expenses	615,000
Depreciation expense	33,000
Interest expense	34,000
Income tax expense	80,000
Total expenses			2,412,000
Net income		$	195,000

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2018		2017
Assets
Current assets:
Cash	$	409,500	$	343,800
Accounts receivable		64,000		80,000
Inventory		160,000		145,000
Prepaid rent		4,600		7,200
Long-term assets:
Investments		205,000		110,000
Land		215,000		270,000
Equipment		250,000		220,000
Accumulated depreciation		(143,000)		(110,000)
Total assets	$	1,165,100	$	1,066,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	35,000	$	98,000
Interest payable		5,100		4,000
Income tax payable		25,000		29,000
Long-term liabilities:
Notes payable		265,000		235,000
Stockholders' equity:
Common stock		460,000		400,000
Retained earnings		375,000		300,000
Total liabilities and stockholders equity	$	1,165,100	$	1,066,000

Additional Information for 2018:

1. Purchase additional investment in stocks for $95,000.

2. Sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land.

3. Purchase $30,000 in equipment by borrowing $30,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $120,000.

5. Issue common stock for $60,000.

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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.)