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value: 10.00 polnts The income statement, balance sheets, and aditional information for Virtual Gaming Systems are providec VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2018 Net sales Gain on sale of land $ 2,420,000 6,000 Total revenues 2,426,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,560,000 597,000 15,000 16,000 62,000 Total expenses 2,250,000 Net income $ 176,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent S 84,280 $ 29,760 67,800 133,000 2,920 82,000 127,000 4,440 Long-term assets Investments Land Equipment Accumulated depreciation 177,000 208,000 214,000 100,000 254,000 202,000 (116,000)(101,000) Total assets $ 771,000 $ 698,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $ 26,000 $ 80,000 2,200 33,000 3,200 Income tax payable Long term liabilities: Notes payable Stockholders' equity: Common stock 30,800 255,000 262,000 243,000 220,000 120,000 Retained eamings 194,000 Total liabilities and stockholders' equity $ 771,000 $ 698,200 Additional Information for 2018: 1. Purchase additional investment in stocks for $77,000. 2 Sell land costing $46,000 for $52,000, resulting in a $6,000 gain on sale of land. 3. Purchase $12,000 in equipment by borrowing $12,000 with a note payable due in three years. No cash is exchanged in the transaction 4 Declare and pay a cash dividend of $102,000 5. Issue common stock for $42,000 any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts) Statement of Cash Flows

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