The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. Net sales Gain on sale of land Total revenues Expenses: VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation $1,635,000 612,000 30,000 31,000 77,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 $2,570,000 5,500 2,575,500 2,385,000 $190,500 2024 $343,380 67,300 155,500 4,420 202,000 213,500 244,000 (138,500) 2023 $280,860 83,000 142,000 6,840 110,000 267,000 217,000 (108,500)
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. 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 sellec. 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 indicated with a minus sign.)
