Net incone 5129,200 VIDEO PHONES, INCORPORATED Balance Sheets December 31 Assets Current assets: Cash Accounts receivable Inventory rent assets: Investments Land Equipment 2824 2823 1260,880 $211,040 105,000 143,000 13,928 6,900 113,000 218,000 256,000 286,000 218,08 (78,680) (4),608) $1,000,000 5859,408 Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Iocose tax payable Long-term Liabilities: Notes payable $73,200 585,000 6,500 11,600 15,000 14,000 301,000 233,000 Stockholders equity: Connon stock 380,000 350,000 Retained earnings 231,200 131,000 Total Liabilities and stockholders' equity $1,000,000 5859,400 Additional Information for 2024: 1. Purchased investment in bonds for $113,000 2. Sold land for $29,200. The land originally was purchased for $38.000, resulting in a $8,800 loss being recorded at the time of the sale. 3. Purchased $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash was exchanged in the transaction 4. Declared and paid a cash dividend of $29.000. W 201 94 D L es The income statement, balance sheets, and additional information for Video Phones, Incorpo Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,350,000 938,000 35,000 8,800 $3,536,000 19,000 56,000 3,406,800 $ 129,200 VIDEO PHONES, INCORPORATED Balance Sheets DOK onces 1. Purchased investment in bonds for $113,000. 2. Sold land for $29,200. The land originally was purchased for $38,000, resulting in a $8,800 loss being recorded at the time of the sale. 3. Purchased $68,000 in equipment by issuing a $68,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $29,000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) Cash Flows from Operating Activities: VIDEO PHONES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: ok nt ences 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