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Problem 11-4B (Algo) Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTHEMS Income statement For the Year Ended December 31,2024 Net sales Gain on sale of land Total revenues Expenseg: Cast of goods sold Opexating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $1,635,000612,00030,00031,00077,000 $190,5002,385,000 VIRTUAL GAMING SYSTEMS Balance sheets December 31 Assets 20242023 Current assets: Cash Accounts receivable Inventory prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total aggets Liabilities and Stockholders' Equity Current 11ab111t1es: Accounts payable Interest payable Income tax payable \begin{tabular}{rr} $343,380 & $280,860 \\ 67,300 & 83,000 \\ 155,500 & 142,000 \\ 4,420 & 6,840 \\ 202,000 & 110,000 \\ 213,500 & 267,000 \\ 244,000 & 217,000 \\ (138,500) & (108,500) \\ \hline$1,091,600 & $998,200 \\ \hline$33,500 & $95,000 \\ 4,800 & 3,700 \\ 23,800 & 27,500 \\ \hline 259,000 & 232,000 \\ \hline 427,000 & 370,000 \\ 343,500 & 270,000 \\ \hline$1,091,600 & $998,200 \\ \hline \end{tabular} Notes payable Stockholders equity: common stock Retained earnings Total liabilities and stockholders' equity \begin{tabular}{rr} $33,500 & $95,000 \\ 4,800 & 3,700 \\ 23,800 & 27,500 \\ 259,000 & 232,000 \\ 427,000 & 370,000 \\ 343,500 & 270,000 \\ \hline 91,600 & $998,200 \end{tabular} Additional Information for 2024: 1. Purchased additional investment in stocks for $92,000. 2. Sold land for $59,000. The land originally was purchased for $53,500, resulting in a $5,500 gain being recorded at the time of the sale. 3. Purchased $27,000 in equipment by issuing a $27,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $117,000. 5. Issued common stock for $57,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indieated with a minus sign.)

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