Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactilms in an accompanying note.

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 $2,696,000 Expenses : Cost of goods sold $1,650,000 Operating expenses 798,000 Depreciation expense 21,000 Loss on sale of land 7,400 Interest expense 12,000 Income tax expense 42,000 Total expenses 2,530,400 Net income $ 165,600 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 166,040 74,400 105,000 9,360 $ 94,320 54,000 129,000 4,680 0 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 99,000 204,000 258,000 (61, 800) $854,000 228,000 204,000 (40,800) $673,200 $ 60, 600 5,400 14,400 $ 75,000 8,800 13,400 273,000 219,000 240,000 260,600 $854,000 240,000 117,000 $673,200 Additional Information for 2021: 1. Purchase investment in bonds for $99,000 2. Sell and costing $24,000 for only $16,600, resulting in a $7,400 loss on sale of land. 3. Purchase $54.000 in equipment by issuing a $54,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $22,000