Income Statement For the Year Ended December 31, 2021 $2,576,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses $1,550,000 778,000 19,000 7,200 11,000 40,e00 2,405,200 $ 170,800 Net income VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: $ 77,560 52,000 127,000 4,440 $152,320 72,200 105,000 8,880 Cash Accounts receivable Inventory Prepaid rent Long-term assets : Investments 97,000 202,000 254,000 (59,400) $832,000 224,000 202,000 (40,400) $646,600 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 $ 73,000 8,400 13,200 $ 58,800 5,200 14, 200 217,000 269,000 220,000 264,800 $ 832,000 220,000 115,000 $646,600 Total liabilities and stockholders' equity Additional Information for 2021: 1. Purchase investment in bonds for $97000 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. Declere and pay a cash dividend of $21,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cashi 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