4 The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. 20 points $2,986, eee VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $1,980,899 Operating expenses 848.000 Depreciation expense 26,898 Loss on sale of land 7,990 Interest expense 14,500 Income tax expense 47,000 Total expenses Net income 2,843, 4ee $ 142,600 VIDEO PHONES, INC. Balance Sheets December 31 2821 2920 $ 199,340 79,900 105, eee 19,560 $136,220 59, eee 134, eee 5,280 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 184,80 299, eee 268, mee (67,880) $ 899, eee 238,eee 299, eee (41,820) $739,700 $ 65,180 5,900 $ 80, eee 9,800 4 Additional Information for 2021: 1. Purchase investment in bonds for $104.000. 2. Sell land costing $29,000 for only $21,100, resulting in a $7.900 loss on sale of land. 3. Purchase $59.000 in equipment by issuing a $59.000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24.500. 20 points 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.) > IS 142,600 Answer is not complete. VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of land) Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in interest payable Increase in income tax payable Decrease in accounts payable Olololololololo 26,000 7,900 (20.000) 29,000 (5.280) (3.900) 1,000 (14,900) MC Graw Hill