4 The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. 2 points Print VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $2,576,000 Expenses: Cost of goods sold $1,550,000 Operating 778,000 expenses Depreciation expense 19,000 Loss on sale of 7,200 land Interest expense 11,000 Income tax 40,000 expense Total expenses 2,405,200 Net income $ 170, 800 Reference VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $152, 320 72,200 105,000 8,880 $ 77,560 52,000 127,000 4,440 97,000 0 202,000 224,000 254,000 202,000 (59,400). (40,400) $832,000 $646,600 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 $ 58,800 5,200 14, 200 $ 73,000 8,400 13, 200 269,000 217,000 220,000 264,800 $832,000 220,000 115,000 $646,600 Additional Information for 2021: 1. Purchase investment in bonds for $97,000. 2. Sell land costing $22,000 for only $14,800, resulting in a $7,200 loss on sale of land. 3. Purchase $52,000 in equipment by issuing a $52,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $21,000. Reference 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 Cash at the end of the period Note: Noncash Activities