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3 Problem 11-7A Calculate operating activities-direct method (L011-4, 11-5, 11-7) 1.5 points eBook The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $3,636, eee Expenses: Cost of goods sold $2,450,000 Operating expenses 958, eee Depreciation expense 37, mee Loss on sale of land 9,00 Interest expense 20, eee Income tax expense 58,eee Total expenses 3,532, eee Net income $ 184, eee Print D References VIDEO PHONES, INC. Balance Sheets December 31 1.5 points 2021 2020 $ 254,600 92, eee 105,000 14,480 $227,800 70,000 145,000 7,200 eBook Print 115,000 220, eee 290, eee (81, 880) $1,010, eee 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 6 260,000 220,000 (44,000 $886,000 References $ 75, eee 7, e80 16, eee $ 91,000 12,000 15,000 305, eee 235, eee 400, eee 207, e80 $1,010,000 400,000 133,000 $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. Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying note. (Llst 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: Cash received from customers s 3.614,000 Cash paid for interest Cash paid to suppliers s $ 3,614,000 Net cash flows from operating activities Cash Flows from Investing Activities: 0 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 $ 0