Please show how each value is calculated in the answer

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, 2018
Net sales		$	2,936,000
Expenses:
Cost of goods sold	$ 1,850,000
Operating expenses	838,000
Depreciation expense	25,000
Loss on sale of land	7,800
Interest expense	14,000
Income tax expense	46,000
Total expenses			2,780,800
Net income		$	155,200

VIDEO PHONES, INC. Balance Sheet December 31
	2018		2017
Assets
Current assets:
Cash	$	193,480	$	127,840
Accounts receivable		78,800		58,000
Inventory		105,000		133,000
Prepaid rent		10,320		5,160
Long-term assets:
Investments		103,000		0
Land		208,000		236,000
Equipment		266,000		208,000
Accumulated depreciation		(66,600)		(41,600)
Total assets	$	898,000	$	726,400
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	64,200	$	79,000
Interest payable		5,800		9,600
Income tax payable		14,800		13,800
Long-term liabilities:
Notes payable		281,000		223,000
Stockholders' equity:
Common stock		280,000		280,000
Retained earnings		252,200		121,000
Total liabilities and stockholders equity	$	898,000	$	726,400

Additional Information for 2018: 1. Purchase investment in bonds for $103,000. 2. Sell land costing $28,000 for only $20,200, resulting in a $7,800 loss on sale of land. 3. Purchase $58,000 in equipment by borrowing $58,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24,000.

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 Flows For the Year Ended December 31, 2018 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Loss (on sale of land) Increase in accounts receivable Increase in prepaid rent Decrease in inventory Decrease in accounts payable Decrease in interest payable Increase in income tax pavable Net cash flows from operating activities 0 Cash Flows from Investing Activities: Purchase investment in bonds Sale of land Net cash flows from investing activities 0 Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities 0