Prepare statement of cash flows for virtual gaming systems

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Reference no: EM131522331

Question: Data for Virtual Gaming Systems is provided in P11-4B.

Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note.

P11-4B: 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.

Reference no: EM131522331

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