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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, 2024
Net sales		$2,410,000
Gain on sale of land		7,500
Total revenues		2,417,500
Expenses:
Cost of goods sold	$1,555,000
Operating expenses	596,000
Depreciation expense	14,000
Interest expense	15,000
Income tax expense	61,000
Total expenses		2,241,000
Net income		$176,500

VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
	2024	2023
Assets
Current assets:
Cash	$122,440	$66,780
Accounts receivable	66,900	81,000
Inventory	131,500	126,000
Prepaid rent	2,860	4,320
Long-term assets:
Investments	176,000	100,000
Land	154,500	200,000
Equipment	212,000	201,000
Accumulated depreciation	(114,500)	(100,500)
Total assets	$751,700	$678,600
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$25,500	$79,000
Interest payable	3,300	2,100
Income tax payable	31,400	33,500
Long-term liabilities:
Notes payable	255,000	244,000
Stockholders' equity:
Common stock	251,000	210,000
Retained earnings	185,500	110,000
Total liabilities and stockholders equity	$751,700	$678,600

Additional Information for 2024:

Purchased additional investment in stocks for $76,000.

Sold land for $53,000. The land originally was purchased for $45,500, resulting in a $7,500 gain being recorded at the time of the sale.

Purchased $11,000 in equipment by issuing a $11,000 long-term note payable to the seller. No cash was exchanged in the transaction.

Declared and paid a cash dividend of $101,000.

Issued common stock for $41,000.

VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities

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