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20 4 points eBook Ask The Income statement, balance sheets, and additional Information for Video Phones, Inc., are provided. Net sales Expenses: VIDEO PHONES, INC.
20 4 points eBook Ask The Income statement, balance sheets, and additional Information for Video Phones, Inc., are provided. Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,000,000 868,000 $3,086,000 28,000 8,100 15,500 49,000 2,968,600 $ 117,400 Print References VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: $182,860 82,100 $152,380 61,000 105,000 136,000 12,240 6,120 Investments Land 106,000 e 211,000 242,000 Equipment 272,000 211,000 Accumulated depreciation (70,200) (42,200) Total assets $ 901,000 $766,300 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 $ 66,900 6,100 15,100 $ 82,000 10, 200 14,100 287,000 226,000 310,000 310,000 215,900 124,000 $ 901,000 $766,300 Additional Information for 2021: 4 20 points eBook Ask Print 1. Purchase Investment in bonds for $106,000. 2. Sell land costing $31,000 for only $22,900, resulting in a $8,100 loss on sale of land. 3. Purchase $61,000 in equipment by issuing a $61,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $25,500. 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.) Cash Flows from Operating Activities: VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Adjustments to reconcile net income to net cash flows from operating activities: References Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: 4 Adjustments to reconcile net income to net cash flows from operating activities: 20 points eBook Ask Print References 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
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