2 Problem 11-7A Calculate operating activities-direct method (L011-4, 11-5, 11-7) The Income statement, balance sheets, and additional Information for Video Phones, Inc, are provided 3 points Bock VIDEO PHONES, INC Income Statenent For the Year Ended December 31, 2321 Net sales $3,486,000 Expenses: cost of oods sold $2,300,000 Operating expenses 920,000 Depreciation expense 34, eee LOSS on sale of land 8,70e Interest expense 18,500 Income tax expense Total expenses 3,344,200 Net incone References VIDEO PONES, INC Balance Sheets December 31 2821 2020 Assets Current assets: Cash $ 264,020 88,700 105, ee 13,690 $202,660 67,000 142,000 6,840 112.00 237,000 284, cee (77,400) 32,27,000 0 254,000 217,6ee (43,400) 584100 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 uity $ 72,2 6,700 15,70 $38, eee 11,40 14,70 -295,000 272,00 320,000 370, ce 120,000 5846, 100 31,207,600 Additional Information for 2021: 1. Purchase investment in bonds for $112.000 2 Sell and costing $37.000 for only $28 300 resulting in 6 58700 To on sale or land. 3. Purchase 567000 in equipment oy issuing a $67.000 long-term note payable to the seller. No cash is exchanged in the transaction 4 Decare and pay a cash olvidend of $28.500 (Mc 2 Additional Information for 2021: 3 points 1 Purchase investment in bonds for $112.000. 2 Sell and costing $37000 for only $28,300, resulting in a $8,700 loss on sale of land. 3. Purchase 567.000 in equipment by issuing a $67,000 long-term note payable to the seller No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $28,500 eBook Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note (List cash outflows and any decrease in cash as negative amounts.) Aik References VIDEO PHONES INC Statement of Cash Flow For the Yanded tec 31, 2021 Cash Flows from Operating Activities Nel income 'S 141,000 Depreciation expense 34.000 Loss on sale of land) 8.700 Increase in accounts receivable 121,700) Decrease in inventory 37.000 Increase in prepaid rent (6 840) Decrease in accounts payable (15.700) Nel cash flows from operating activities Cash Flows from Investing Activities Purchase investment in brands (112.000) Gain con sale of land) 20.300 5 177.200 (33.700) Net cash flows from westing activities Cash Flows from Financing Activities Payment of osh dividends 28.500 fiat cash flows from financing activities niet increase in cash Cash at the beginning of the period Cash of the end of the period Note: Noncath Activities Purchase equipment issuing a note payable 25.500) 61.360 202.560 264.020 5 es 57.000