Ch 11 Homework 6 1 Problem 11-4A Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) 225 points The Income statement, balance sheets, and additional information for Video Phones, Inc., are provided Book 53,386,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $2,200,000 Operating expenses 988,000 Depreciation expense 32,000 Loss on sale of land 8,500 Interest expense 17, see Income tax expense 53,000 Total expenses Net income Ask References 3,219,000 $ 167,000 2021 2820 $ 270,300 86,500 195.000 13,200 $165,00 65,000 140,000 VIDEO PHONES, INC. Balance Sheets December 31 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-tere-assets Investments Land Equipment Accumulated depreciation total assets Lilities and stocines fut Current liabilities accounts payable Interest le Income tax payable Longters lilities: Notes Day Stockholders buity 110,000 215,ce 200,00 215, 163.000 5019,500 $70,50 - 15,5 $ 35,000 11,000 14,500 25,000 270, 350.000 Total sitten stodolers 51,000.00 Additional information for 2021 Purchase mentine bonot for SH0.000 2. Sed cotting $35.000 for $26.500_resumingin 8.500 loco find 2 Purch 565000 m by sung 505.050 long contesto 4 Decay cathod 27500 1 1. Purchase investment in bonds for $110,000 2. Sell and costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land 3. Purchase $65,000 in equipment by Issuing a $65,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $27,500 2.25 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.) eBook VIDEO PHONES INC A For the Year Ended December 1, 2021 Cash Flows from Operating Activities References Adjustments to reconcile net income to nel cash flows from operating activities Net cash flows from operating activities Cash Flows from investing Active Netcash flows from investing activities Cash Flows from Financing Activities Nel cash flow from facing acties Cash at the beginning of the Cash at the end of the period Now lonca Activities 5 Ch 11 Homework 10 1 Problem 11-4A Prepare a statement of cash flows---indirect method (L011-2, 11-3, 11-4, 11-5) 2.25 points The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Skoped $3,386,000 black VIDEO NIONES INC Income statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $2,200,000 Operatine expenses 900,000 Depreciation expense 32,800 Loss on sale of land 8,500 Interest expense 17,500 Income tax expense 53, Total expenses Net income AK 3,219.000 $ 167,000 References 2021 202 $ 270,300 36,500 105,000 13,200 $185,900 65,000 140,000 5,6 VIDEO PHONES, INC. Bence Sheets December 31 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 Connon stock Retained earnings Total liabilities and stockholders equity nie, 215,000 280,000 175,800) $1,005,000 250,000 215,000 (43,000) $819,5ee 20,500 6. See 15,500 $ 30,000 11,000 295,000 230,000 267,500 $1,085, 35e,eee 125,000 3815, see Additional Information for 2021 1. Purchase nvestment in bonds for $110.000 2 Sell and costing $35,000 for only 526,500 resulting in a $8,500 loss on sale of land 3. Purchase $65.000 mn equipment by issuing o $65.000 long-term note payable to the seller No cash is exchanged in the transaction 4 Declare and pay a cash dividend of 527.500 Additional Information for 2021: 1. Purchase investment in bonds for $110,000 2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land, 3. Purchase $65.000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash ts exchanged in the transaction 4. Declare and pay a cash dividend of $27,500. 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 Flow 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 Het cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note Roncash Activities The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $3,386,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Cost of goods sold $2,200,000 Operating expenses 908, eee Depreciation expense 32,000 LOSS on sale of land 8,500 Interest expense 17,500 Income tax expense 53,000 Total expenses Net Income 3,219,000 $ 167,000 IDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 270,300 86,5ee 105,000 13,200 $165,9ee 65, eee 140,000 6,600 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Limbilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-tern 11abilities: Notes payable stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 110,eee 215,000 280,000 (75) $1,025,000 250,000 215,000 (42,00) 5819,500 $ 70,500 6,5ee 15,520 $ 86,000 11, eee 14,500 295,600 238, cee 350,00 267,500 $1,005, 350, eee 123.ee 5519,500 Additional Information for 2021: 1. Purchase investment in bonds for $110.000 2. Sellland costing $35.000 for only $26.500, resulting in a $8,500 105s on sale of land 3. Purchase 565.000 in equipment by issuing 565.000 long term note payable to the seller No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $27.500 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) 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 0 Net cash flows from investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the pend Note: Noncash Activities $ 0