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Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) 4 The income statement, balance sheets, and additional information for Video Phones, Inc. are

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Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) 4 The income statement, balance sheets, and additional information for Video Phones, Inc. are provided. 2 Doints VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales $3,486,000 Expenses: Cost of goods sold $2,300,000 Operating expenses 928,000 Depreciation expense 34,000 Loss on sale of land 8,700 Interest expense 18,500 Income tax expense $5,000 Total expenses 3,344,200 Net income $ 141,800 Print References 2021 2020 5202,660 67.000 142.ee 6,840 VIDEO PHONES, INC. Balance Sheets December 31 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-tere assets! Investoints Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Income tax payable 5 264,620 83,700 105,000 13,680 112,000 217,000 284,800 (77,400) $1,007,000 a 254.000 217.000 (43,400) 5846,100 $ 72,300 6,700 15,700 $ 30,000 11,400 14,700 Save 4 Help Additional Information for 2021: 1 Purchase investment in bonds for $112.000 2. Sell and costing $37.000 for only $28,300, resulting in a $8.700 loss on sale of land. 3. Purchase $67,000 in equipment by issuing a $67,000 long term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $28,500. 2 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.) 10 Pint VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 References Cash Flown from Operating Activities: Adjustments to reconcile net income to net cash flow from operating activities $ Netcashows from operating activities Cash Flows from investing Activities For the Year Ended December 31, 2121 4 Cash Flows from Opening Acts Adments to content income to nechtowe from operating activities 2 Priet 0 No cash flows from operating activi Cash Flows from investing Adw 0 Net cash flows from newing activities Cash Flows from Financing Activities 0 Nech flows from franging activities Cash at the beginning of the period Cash at the end of the period 0

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