2 Problem 11-7A Calculate operating activities--direct method (LO11-4, 11-5, 11-7) The income statement balance sheets, and additional information for Video Phones, Inc., are provided 3 point VTIKO ONES, Income Statement For the Year Ended their 2011 Net Sales 19,406,000 Expenses cost of goods sold $2,100,00 Operating expenses 220,00 Depreciation expense 14,000 Loss on sale of land 1,700 Interest expense 18, Income tax expense 35.00 Total expenses 3.34120 Net income $ 141,60 Tafurones 220 1201,660 67.00 141.00 VIDEO POS, IN Balance Sheets December 1 Assets current assets: Cash accounts receivable Inventory Prepaid est Longter svetst Investments Lant Equipment Accumulated depreciation Total assets Lalities and stockholders' fuity Current test Accounts payable Interest ble Into tax payable Long term liabilities Notes De Stockholders' ty con stoc Retained earnings Total ilities and stockholders equity $ 201,629 105,000 13, 112, 217.00 254,00 22.00 11,07,000 254,000 217,000 14.00 566,10 1 50,00 11,400 72,100 6,70 15,00 299,00 231,000 370.000 370.000 1.00 11.00.400 100 Additional Information for 2021 1. Purchase investment in bonds for $112.000 2. Seland cosung 537000 for only $23300, alting in a $8,700 loss one of fond Purchase 567000 in equipment by Issuing a $67.000 long term note payable to the seller. No cash is changed in the transaction 4. Declare and coy a cash dividend of $20 500 2 Additional Information for 2021: 3 points 1. Purchase investment in bonds for $112,000. 2. Sell land costing $37.000 for only $28,300, resulting in a $8,700 loss on sale of land 3. Purchase $67,000 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.) References VIDEO PHONES, INC Sincent of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Net income $ 141 800 Depreciation expense 34000 Loss (on sale of land) 8.700 Increase in accounts receivable (21,700) Decrease in inventory 37000 Increase in prepaid rent (6,840) Decrease in accounts payable (15,700) Net cash flows from operating activities Cash Flows from Investing Activities Purchase investment in bonds (112,0001 Gain (on sale of land) 20,300 5 177260 (03.700) Net cash flows from investing activities Cash Flows from Financing Activities Payment of cash dividends (26 500) Net cash flows from financing activities he increase in cash Cash at the beginning of the period Cash at the end of the period Note Noncash Activites Purchase equipment issuing a note payable (20 500) 61,350 202 660 264.020 5 67 000