The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. Net sales VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $2,510,000 2,500 2,512,500 $1,605,000 606,000 24,000 25,000 71,000 2,331,000 $181,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 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 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 Additional Information for 2024: 1. Purchased additional investment in stocks for $86,000. 2024 2023 $211,140 73,900 $154,980 89,000 146,500 136,000 4,060 6,120 196,000 110,000 210,500 261,000 232,000 211,000 (129,500) (105,500) $944,600 $862,600 $30,500 $89,000 $30,500 4,200 21,400 $89,000 3,100 24,500 247,000 226,000 361,000 310,000 280,500 210,000 $944,600 $862,600 2. Sold land for $53,000. The land originally was purchased for $50,500, resulting in a $2,500 gain being recorded at the time of the sale. 3. Purchased $21,000 in equipment by issuing a $21,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $111,000. 5. Issued common stock for $51,000. Cash Flows from Operating Activities: VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net 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 investing activities 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.) Cash Flows from Financing Activities: Cash Flows from Operating Activities: VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities