$3,436,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $2,250,000 Operating expenses 918,090 Depreciation expense 33,000 Loss on sale of land 8,600 Interest expense 18,000 Income tax expense 54,000 Total expenses Net income 3, 281,600 $ 154,400 VIDEO PHONES, INC Balance Sheets December 31 2021 2020 ces $ 267, 160 87,600 105,000 13,440 $194,289 66,990 141,000 6, 720 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: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 111,000 216,000 282,000 (76,200) $1,006,000 252,000 216,000 (43,200 $832,800 $ 71,400 6,600 15,600 $ 87,000 11,200 14,600 297,000 231,000 360,000 255,400 $1,006,000 360,000 129,000 $832, 800 Additional Information for 2021: 1. Purchase investment in bonds for $111.000 2. Sell land costing $36.000 for only $27,400, resulting in a $8,600 loss on sale of land. 3. Purchase $66,000 in equipment by issuing a $66.000 long-term note payable to the seller. No cash is exchanged in the transaction 4 Declare and pay a cash dividend of $28,000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash 1 Purchase investment in bonds for $111.000. 2 Sell and costing $36.000 for only $27,400, resulting in a $8,600 loss on sale of land. 3. Purchase $66,000 in equipment by Issuing a $66,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $28.000 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.) VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities 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