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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $2,816,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,750,000 Operating expenses 818,000 Depreciation expense 23,000 Loss on sale of land 7,600 Interest expense 13,000 Income tax expense 44,000 Total expenses Net income 2,655,600 $ 160,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2028 $ 179,760 76,600 105,000 9,840 $111,080 56,000 131,000 4,920 101,800 206,000 262,000 (64,200) $ 876,000 232,000 296,000 (41,200) $699,800 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 62,400 5,600 14,600 $ 77,000 9,200 13,600 277,000 221,600 260,000 256,400 $ 876,000 26 , 119,000 $699,800 Additional Information for 2021: 1. Purchase investment in bonds for $101000 2. Sell land costing $26,000 for only $18.400, resulting in a $7600 loss on sale of land. 3. Purchase $56,000 in equipment by Issuing a $56,000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $23,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncosh transactions in an accompanying note (List cash outflows and any decrease in cash os negative amounts.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income lo nel cash flows from operating activities Net cash flows from operating activities Cash Flows from investing Activities $ 0 Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities

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