The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,420,000 6,089 2,426,089 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,560,000 Operating expenses 597,000 Depreciation expense 15,000 Interest expense 16,000 Income tax expense 62,000 Total expenses Net income 2,250,000 176,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 GE 1 $ 84,280 67,800 133,000 2,920 $ 29,760 82,000 127,000 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 177,000 208,000 214,000 (116, 080) $ 771,000 100,000 254,000 202,000 (101,000) $698, 200 $ $ 26,000 3,200 30,800 80,000 2,200 33,000 255,000 262,000 194,000 $ 771,000 243,000 220,000 120,000 $ 698,208 Additional Information for 202t: 1. Purchase additional investment in stocks for $77,000. 2. Sell land costing $46.000 for $52.000, resulting in a $6.000 gain on sale of land 3. Purchase $12,000 in equipment by issuing a $12,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $102,000 5. Issue common stock for $42.000 Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note (List cash 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 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