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

land

2,200  

        Total revenues

2,702,200  

       Cost of goods sold

1,610,000  

       Operating expenses

607,000  

       Depreciation expense

23,700  

       Interest expense

       Income tax expense

          Total

expenses

VIRTUAL GAMING SYSTEMS

Balance Sheet

December 31

  Assets

       Cash

       Accounts receivable

       Inventory

       Prepaid rent

assets:

       Investments

       Land

       Equipment

       Accumulated

depreciation

          Total

assets

and Stockholders' Equity

liabilities:

       Accounts payable

  34,000   

  95,000   

       Interest payable

       Income tax payable

liabilities:

       Notes payable

equity:

       Common stock

       Retained earnings

         Total

liabilities and stockholders' equity

Information for 2012:

in stocks for $59,000.

$48,200, resulting in a $2,200 gain on sale of land.

Purchase $21,000 in equipment by borrowing $21,000 with a note

payable due in three years. No cash is exchanged in the

transaction.

of $150,000.

$54,000.

Prepare the statement of cash flows for Virtual Gaming Systems

using the direct 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.)

VIRTUAL GAMING SYSTEMS

Statement of Cash Flows

For the year ended December 31, 2012

Operating Activities

     (Click to select)Cash paid for income

taxesCash paid for interestCash paid for operating expensesCash

received from customersSale of landCash paid to employeesCash paid

to suppliers

$   

     (Click to select)Cash paid for

operating expensesCash paid for income taxesCash paid for

interestSale of landCash paid to employeesCash received from

customersCash paid to suppliers

     (Click to select)Cash paid for

interestCash paid to suppliersSale of landCash paid for income

taxesCash paid for operating expensesCash received from

customersCash paid to employees

     (Click to select)Cash paid to

employeesCash paid to suppliersSale of landCash received from

customersCash paid for income taxesCash paid for interestCash paid

for operating expenses

     (Click to select)Cash paid for

interestCash paid to suppliersSale of landCash received from

customersCash paid for operating expensesCash paid for income

taxesCash paid to employees

        Net cash flows from

operating activities

$   

Investing Activities

     (Click to select)Purchase investment

in bondsPurchase investment in stockCash paid for income taxesCash

received from customersCash paid for interestSale of landCash paid

to suppliers

     (Click to select)Cash paid for

interestCash received from customersPurchase investment in

stockCash paid for income taxesSale of landPurchase investment in

bondsCash paid to suppliers

        Net cash flows from

investing activities

Financing Activities

     (Click to select)Issue common

stockCash paid for operating expensesCash paid for interest

Purchase investment in bondsPayment of cash dividendsPurchase

investment in stockPurchase of equipment

     (Click to select)Cash paid for

interest Cash paid for operating expensesPurchase investment in

stockPayment of cash dividendsPurchase of equipmentIssue common

stockPurchase investment in bonds

        Net cash flows from

financing activities

increase in cashNet decrease in cash

select)Cash at the beginning of the periodCash at the end of the

period

select)Cash at the end of the periodCash at the beginning of the

period

$   

Activities

     (Click to select)Cash paid for

interestCash paid for income taxesPurchase equipment issuing a note

payableCash received from customersPurchase investment in bondsCash

paid for operating expensesCash paid to suppliers

$