3

The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. \begin{tabular}{|c|c|c|} \hline For the & \begin{tabular}{l} DEO PHONES, INCORPORATED \\ Income Statement \\ Year Ended December 31,2024 \end{tabular} & \\ \hline Net sales & & $2,756,eee \\ \hline Expenses: & & \\ \hline Cost of goods sold & $1,700,000 & \\ \hline Operating expenses & 808,ee0 & \\ \hline Depreciation expense & 22,0e0 & \\ \hline Loss on sale of land & 7,500 & \\ \hline Interest expense & 12,500 & \\ \hline Income tax expense & 43,000 & \\ \hline Total expenses & & 2,593,000 \\ \hline Net income & & $163,090 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & 2824 & 2823 \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash = & $172,900 & $102,700 \\ \hline Accounts receivable & 75,500 & 55,000 \\ \hline Inventory & 105,000 & 130, eee \\ \hline Prepaid rent & 9,600 & 4,890 \\ \hline \multicolumn{3}{|l|}{ Long-term assets: } \\ \hline Investments & 10,ee & \\ \hline Land & 205,000 & 23,e \\ \hline Equiphent & 260,000 & 225 , eee \\ \hline Accumulated depreciation & (63,000) & (41,000) \\ \hline Total assets & $865,000 & $686,500 \\ \hline & \begin{tabular}{l} Liabilities and stockholder's tauly \\ Current ifabilities: \end{tabular} & \\ \hline \begin{tabular}{l} Current liabilities: \\ Accounts payable \end{tabular} & $61,500 & \$ 76,000 \\ \hline Interest payable & 5,500 & 9,000 \\ \hline Income tax payable & 14,500 & 13,500 \\ \hline \multicolumn{3}{|l|}{ Long-term liabilities: } \\ \hline Notes payable & 275,000 & 228, eee \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Notes payabie \\ 5tockholders' equity: \end{tabular}} \\ \hline Common stock & 250,000 & 25e,000 \\ \hline Retained earnings & 258,500 & 118,000 \\ \hline Total liabilities and stockholders' equity & $865,8e0 & $686,500 \\ \hline \end{tabular} Additional Information for 2024 : 1. Purchased investment in bonds for $100,000 2. Sold land for $17,500. The land originally was purchased for $25,000, resulting in a $7,500 loss being recorded at the time of the sale. 3. Purchased $55.000 in equipment by issuing a $55,000 long-term note payable to the seller. No cash was exchapged in the transaction. 4. Declared and paid a cash dividend of $22,500. Prepare 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.) \begin{tabular}{|l|l|} \hline & \\ \hline Net cash flows from operating activities & \\ \hline Cash Flows from Investing Activities: & \\ \hline & \\ \hline & \\ \hline Net cash flows from invosting activities & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & \\ \hline Net cash flows from financing activities \\ \hline Cash at the beginning of the period \\ \hline Cash at the ond of the period \\ \hline Note: Noncash Activities \\ \hline \end{tabular}