Prepare the statement of cash flows using

Question

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, 2012
Revenues		$	3,100,000
Gain on sale of land			2,700
Total revenues			3,102,700
Expenses:
Cost of goods sold	$ 1,680,000
Operating expenses	608,000
Depreciation expense	23,700
Interest expense	24,700
Income tax expense	70,400
Total expenses			2,406,800
Net income		$	695,900

 

VIRTUAL GAMING SYSTEMS Balance Sheet December 31
	2012	2011
Assets
Current assets:
Cash	$ 667,100	$ 146,000
Accounts receivable	82,000	94,000
Inventory	148,000	140,000
Prepaid rent	4,500	6,500
Long-term assets:
Investments	188,000	110,000
Land	214,000	260,000
Equipment	234,000	213,000
Accumulated depreciation	(132,700)	(109,000)
Total assets	$ 1,404,900	$ 860,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$   34,000	$   93,000
Interest payable	4,700	3,200
Income tax payable	21,000	29,000
Long-term liabilities:
Notes payable	251,000	230,000
Stockholders' equity:
Common stock	343,000	290,000
Retained earnings	751,200	215,300
Total liabilities and stockholders' equity	$ 1,404,900	$ 860,500

 

Additional Information for 2012:
1.	Purchase additional investment in stocks for $78,000.
2.	Sell land costing $46,000 for $48,700, resulting in a $2,700 gain on sale of land.
3.	Purchase $21,000 in equipment by borrowing $21,000 with a note payable due in three years. No cash is exchanged in the transaction.
4.	Declare and pay a cash dividend of $160,000.
5.	Issue common stock for $53,000.

 

Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)