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

VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2015
Net sales		$	2,580,000
Gain on sale of land			6,000
Total revenues			2,586,000
Expenses:
Cost of goods sold	$ 1,640,000
Operating expenses	613,000
Depreciation expense	31,000
Interest expense	32,000
Income tax expense	78,000
Total expenses			2,394,000
Net income		$	192,000

VIRTUAL GAMING SYSTEMS Balance Sheet December 31
	2015		2014
Assets
Current assets:
Cash	$	355,520	$	291,840
Accounts receivable		66,200		82,000
Inventory		157,000		143,000
Prepaid rent		4,480		6,960
Long-term assets:
Investments		213,000		120,000
Land		214,000		268,000
Equipment		246,000		218,000
Accumulated depreciation		(140,000)		(109,000)
Total assets	$	1,116,200	$	1,020,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	34,000	$	96,000
Interest payable		5,000		3,800
Income tax payable		24,200		28,000
Long-term liabilities:
Notes payable		261,000		233,000
Stockholders' equity:
Common stock		438,000		380,000
Retained earnings		354,000		280,000
Total liabilities and stockholders equity	$	1,116,200	$	1,020,800

Additional Information for 2015:
1.	Purchase additional investment in stocks for $93,000.
2.	Sell land costing $54,000 for $60,000, resulting in a $6,000 gain on sale of land.
3.	Purchase $28,000 in equipment by borrowing $28,000 with a note payable due in three years. No cash is exchanged in the transaction.
4.	Declare and pay a cash dividend of $118,000.
5.	Issue common stock for $58,000.

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.)

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