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, 2021 Net sales Gain on sale of land Total revenuea Еxpenses Cost of goods sold Operating expensen Depreciation expense Interest expense Income tax expense Total expenses $2,410,000 7,500 2,417,500 $1,555,000 596,000 14,000 15,000 61,000 2,241,000 176,500 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Asseta Current assetsi Cash Accounta receivable $ 122,440 66,900 131,500 2,860 566,780 81,000 126,000 4320 Inventory Prepaid rent Long-term assetai Investments Land Equipment Accumulated depreciation 176,000 154,500 212,000 (114,500) 751, 700 100,000 200,000 201.000 (100,500) 678,600 Total aeseta Liabilitien and Stockholders Equity Current liabilitiee Accounta payable Intereet payable Income tax payable Long-term abllittes: Notes payable Stockholdera equityi Common stock Retalned earnings Total liabilitles and stockholders equity 25,500 3,300 31,400 24 79,000 2,10 33,500 255,000 244,000 251,000 185,500 210,000 110,000 478,600 5.751.700 Additional Information for 2021: 1. Purchase additional investment in stocks for $76,00. 2. Sell land costing $45,500 for $53,000, resulting in a $7,500 gain on sale of land. 3. Purchase $11,000 in equipment by issulng a $11,000 long term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $101,000. 5. Issue common stock for $41,000.
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, 2021 Net sales Gain on sale of land Total revenuea Еxpenses Cost of goods sold Operating expensen Depreciation expense Interest expense Income tax expense Total expenses $2,410,000 7,500 2,417,500 $1,555,000 596,000 14,000 15,000 61,000 2,241,000 176,500 Net income VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Asseta Current assetsi Cash Accounta receivable $ 122,440 66,900 131,500 2,860 566,780 81,000 126,000 4320 Inventory Prepaid rent Long-term assetai Investments Land Equipment Accumulated depreciation 176,000 154,500 212,000 (114,500) 751, 700 100,000 200,000 201.000 (100,500) 678,600 Total aeseta Liabilitien and Stockholders Equity Current liabilitiee Accounta payable Intereet payable Income tax payable Long-term abllittes: Notes payable Stockholdera equityi Common stock Retalned earnings Total liabilitles and stockholders equity 25,500 3,300 31,400 24 79,000 2,10 33,500 255,000 244,000 251,000 185,500 210,000 110,000 478,600 5.751.700 Additional Information for 2021: 1. Purchase additional investment in stocks for $76,00. 2. Sell land costing $45,500 for $53,000, resulting in a $7,500 gain on sale of land. 3. Purchase $11,000 in equipment by issulng a $11,000 long term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $101,000. 5. Issue common stock for $41,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disciose any noncash transactions In an
accompanying note. (List cash outfiows and any decrease In cash as negative amounts.)
VIRTUAL GAMING SYSTEMS
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net cash flows from operating actvities
Cash Flows from Investing Activities:
Net cash flows trom investing activities
Cash Flows from Financing Activities:
Net cash flows from financing activities
Cash at the beginning of the period
Cash at the end of the period
Note: Noncash Activities
Transcribed Image Text: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, 2021
Net sales
Gain on sale of land
Total revenuen
$2,410,000
7,500
2,417,500
Еxpenseв:
Cost of goods sold
Operating expensen
Depreciation expense
Interest expenae
Income tax expense
Total expenses
$1,555,000
596,000
14,000
15,000
61,000
2,241,000
5 176,500
Net income
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2021
2020
Assets
Current asseta:
Cash
Accounts receivable
$ 122,440
66,900
131,500
2,860
S66, 780
81,000
126,000
4320
Inventory
Prepaid rent
Long-term aBsets:
Investments
Land
176,000
154,500
212,000
(114,500)
$ 751, 700
100,000
200,000
201.000
100,500)
5 678, 60
Equipment
Accumulated depreciation
Total assets
Liabilitien and Stockholders' Equity
Current 1iabilities:
Accounts payable
25,500
3,300
31,400
79,000
2,100
33,500
Intereet
yable
Income tax payable
Long-term 1labilittes
Notes payable
Stockholders equityi
Common stock
Retained earnings
Total liabilities and stockholders' equity
255,000
244,000
251,000
185 500
5 751,700
210,000
110,000
E478.600
Additional Information for 2021:
1. Purchase additional investment in stocks for $76,00.
2. Sell land costing $45,500 for $53,000, resulting in a $7,500 galn on sale of land.
3. Purchase $11,000 in equipment by issulng a $1,000 long term note payable to the seller. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $101,000.
5. Issue common stock for $41.000.
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