Question: The income statement, balance sheet, and additional information for Virtual Gaming Systems are provided.
Additional Information for 2012:
1. Purchase additional investment in stocks for $85,000.
2. Sell land costing $50,000 for $52,000, resulting in a $2,000 gain on sale of land.
3. Purchase $20,000 in equipment by borrowing $20,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $110,000.
5. Issue common stock for $50,000.
Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note.