11-4A (Algo) Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,250,000 $3,436,000 918,000 33,000 8,600 18,000 54,000 3,281,600 $ 154,400 Accote VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 Total expenses Net income 3,281,600 $ 154,400 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 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: $267,160 87,600 $194,280 66,000 105,000 141,000 13,440 6,720 111,000 0 216,000 252,000 282,000 216,000 (76,200) (43,200) $1,006,000 $832,800 $ 71,400 6,600 15,600 $ 87,000 11,200 14,600 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 Additional Information for 2024: 1. Purchased investment in bonds for $111,000. $ 71,400 $ 87,000 6,600 11,200 15,600 14,600 297,000 231,000 360,000 360,000 255,400 $1,006,000 129,000 $832,800 2. Sold land for $27,400. The land originally was purchased for $36,000, resulting in a $8,600 loss being recorded at the time of the sale. 3. Purchased $66,000 in equipment by issuing a $66,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $28,000. Required: Prenare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanving note equired: Chec repare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) Cash Flows from Operating Activities: VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities: $ 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 0 0 0 $ 0