Assets Net sales Expenses: VIDEO PHONES, INC. Income Statement For the year ended December 31, 2021 Cost of goods sold $3,636,000 Operating expenses Depreciation expense $2,450,000 958,000 37,000 Loss on sale of land 9,000 Interest expense 20,000 Income tax expense 58,000 Total expenses Net income 3,532,000 $ 104,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Current assets: Cash $ 254,600 $227,800 Inventory Accounts receivable Prepaid rent Long-term assets: Investments Land 92,000 70,000 105,000 145,000 14,400 7,200 115,000 0 220,000 260,000 Equipment 290,000 220,000 Accumulated depreciation (81,000) (44,000) Total assets $1,010,000 $886,000 (continued) ded) CHAPTER 11 Statement VIDEO PHONES, INC. Balance Sheets December 31 2021 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 2020 $ 75,000 7,000 $ 91.000 12,000 16,000 15,000 305,000 235,000 400,000 400,000 207,000 133,000 $1,010,000 $886,000 Additional Information for 2021: 1. Purchase investment in bonds for $115,000. 2. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land. 3. Purchase $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $30,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying