VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2021 Net sales $3,436,000 Expenses: Cost of goods sold $2,250,000 918,000 33,000 8,600 Operating expenses Depreciation expense Loss on sale of land Interest expense 18,000 Income tax expense 54,000 Total expenses 3,281,600 154,400 Net income VIDEO PHONES, INC Balance Sheets December 31 2021 2020 Assets Current assets: $194,280 66,000 141,000 6,720 Cash 267,160 87,600 105,000 13,440 Accounts receivable Inventory Prepaid rent Long-term assets: 111,000 216,000 282,000 0 Investments Land 252,000 216,000 (43,200) Equipment Accumulated depreciation (76,200) $1,006,000 $832,800 Total assets Liabilities and Stockholders Equity Current liabilities Accounts payable Interest payable Income tax payable $ 87,000 11,200 14,600 71,400 6,600 15,600 Long-term liabilities Notes payable Stockholders' equity 297,000 231,000 Common stock 360,000 255,400 360,000 129,000 Retained earnings Total liabilities and stockholders equity $1,006,000 $832,800 Additional Information for 2021: 1. Purchase investment in bonds for $11,000. 2. Sell land costing $36,000 for only $27,400, resulting in a $8,600 loss on sale of land. 3. Purchase $66,000 in equipment by issuing a $66,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $28,000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as 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 to net cash flows from operating activities: Net cash flows from operating activities 0 Cash Flows from Investing Activities: Net cash flows from investing activities 0 Cash Flows from Financing Activities: Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period 0 Note: Noncash Activities